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Toronto detached home price hits $1.3 million in September

October 6th, 2016  |  Home

Another month another housing record broken in the city of Toronto, where the average detached home sold for a whopping $1.29 million.

The Toronto Real Estate Board (TREB) published their housing data from September, revealing yet another dramatic increase in home prices compared to 2015. According to the Financial Post, overall prices went up 20.4% in the GTA while the number of sales went up 21.5%.

The average selling price across all home types in the GTA was $755,755.

The industry will be watching the market even more closely over the next couple of months as new mortgage rule changes coming on October 17th should make buying a home more difficult by raising qualification requirements. Currently, a buyer only needs to qualify for the rate they’re getting, but to make sure they won’t default in a higher rate environment, buyers will now need to pass a “stress test” when applying for fixed rate mortgages with terms of 5 years or longer. This means people won’t qualify for quite as large loans and may end up needing to settle on less expensive properties or continue renting until they can afford more.

While a new foreign buyer’s tax in Vancouver slowed down the pace of sales in the city, prices continued to rise. While this new measure may also help safely slow down sales it won’t be clear if it actually helps affordability for the next few months.