The Toronto Real Estate Board (TREB) has released housing figures for the month of September, as well as third quarter commercial figures, and numbers show a noticeable increase in sales and leasing, respectively, when compared with last year's figures. TREB reported 6,059,755 square feet of leased industrial, commercial/retail and office space during the third quarter of 2014, marking a 5.3 per cent increase when compared to the third quarter of 2013. While the number of sales dropped, at 254 compared with the 279 properties reported sold during Q3 2013, average selling prices on a per square foot basis (where pricing was disclosed) were up for industrial, commercial/retail and office properties. 

Toronto skyline, image by Jack Landau

“We have seen solid growth in the Canadian economy recently. Some of this growth was based on strong export numbers, particularly as it relates to goods produced for markets in the United States.  Export based production is obviously tied to industrial firms, so it makes sense that we saw an uptick in industrial leasing," said Toronto Real Estate Board President Paul Etherington. "By all accounts, the Canadian economy is on a solid footing. However, one component of growth that has lagged is business investment. As consumer spending remains strong and exports improve, the expectation is that business investment will also pick up. In all likelihood, this improvement would include an uptick in commercial property sales,” continued Mr. Etherington.

In the housing market, there were 8,051 transactions reported through the TorontoMLS system in September 2014, marking an impressive 10.9 per cent increase compared to September 2013. Through the first three quarters of the year, sales jumped up by 6.9 per cent annually to 73,465, and September 2014's average selling price climbed to $573,676, a 7.7 per cent increase versus the same period in 2013.  GTA price growth was strongest within the City of Toronto, for both low-rise home types as well as condominium apartments. The average selling price year-to-date was $563,813, an 8.5 per cent increase compared to the first nine months of 2013. 

Chart of monthly MLS sales, image courtesy of TREB

"If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by TREB Members this year. On the pricing front, the multitude of willing buyers in the marketplace coupled with the short supply of listings will continue to translate into very strong annual rates of price growth in the fourth quarter," said Jason Mercer, TREB's Director of Market Analysis.