Luxury Segment Fuels GTA Real Estate Price Rises

Going Up by Joshua Williams
Buyer confidence is obviously rising
photo by Joshua Williams

October 2009 recorded leaps in both year-to-year sales and average price in the GTA, according to the latest TREB report.

Sale went up to 8,478 units, up by 64% compared to October 2008. Average price reached $423,559 in GTA. However, these figures are compared with last year’s very weak October and are not of extreme importance. More relevant information can be gleaned when comparing October 2009 to the previous month.

Both sales and average price, two key indicators, are up by about 3.5%. As noted by the TREB experts, the highest growth was recorded in the +$750,000 segment, so a rising lust for luxury properties can be observed. Buyer confidence is obviously rising, making real estate one of the healthiest industries in Canada.

We may see even more pressure on prices, since the influx of new listings and the stock of active housing units is shrinking, however, as Jason Mercer, TREB’s Senior Manager of Market Analysis, said: “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”

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