November 3, 2021 | Buying
Home sales in the GTA have reached the second-highest level on record for the month of October. However, the inventory of homes listed for sale did not keep up with the pace of demand. The number of new listings had dropped by approximately 33% compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including the recharged condominium market.
Housing affordability in the GTA must be addressed and the only sustainable way to do so is to deal with the persistent mismatch between supply and demand. The demand for housing is not disappearing, which is why all 3 levels of government must focus on supply. The federal government has stated that collaboration with provinces and municipalities is required to achieve appropriate levels of supply and this collaboration could be paired with housing-related incentives tied to federal infrastructure investment.
9,783 sales were reported through TRREB’s MLS System in October 2021, which is down by 6.9% compared to the 10,503 sales we saw in the record-breaking October of last year. The double-digit increases in the condo market sales mitigated annual declines in low-rise home sales. The number of new listings entered into the system was down by almost 33.3% over the same period, with consistent declines across all major home types.
The MLS Home Price Index Composite Benchmark was up by 24.2% year-over-year. The average selling price for all homes combined rose by 19.3% to $1,155,345 compared to last year. The low-rise market continued to drive price growth in October, but the annual price growth for condos was in the double-digits as well.
Economic recovery and household confidence that this recovery will continue is a huge contributor to the tighter market conditions we’re witnessing in the GTA. An integral part of future economic development in the GTA will be the ability to provide adequate ownership and rental housing supply so people can continue to move to the region to live, work and spend money in the local economy.
There is no doubt that transacting in Real Estate has certainly transformed- Throughout this pandemic we have had the pleasure of servicing a number of our clients, resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.