December 6, 2021 | Buying
New all-time highs and records were set this past month. Home sales reached a new record for the month of November and the average selling price also reached a new all-time high. New listings were down substantially compared to last year across all market segments – further highlighting the apparent supply issue within the GTA.
9,017 home sales were reported which put November 2021 3.3% above the November 2020 result, setting a new record. At the same time, new listings dropped by 13.2% year-over-year, with double-digit declines for low-rise home types, and condominium apartments.
It’s evident that all government parties have no choice but to take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today and to work towards satisfying growing demand in the future.
The GTA remains a prime destination for new immigrants and is at the centre of the Canadian economy. Governments have fixated on short-term “Band-Aid” policies to artificially suppress demand for far too long. The current market activity proves definitively that these policies do not work, and unless governments work together to streamline the approval processes and incentivize housing conditions, the ongoing housing affordability concerns will escalate. The City of Toronto has moved forward with initiatives to facilitate the creation of more mid-density home types, including their current discussions on ways to boost more multiplex development across the city.
The MLS Home Price Index composite benchmark was up by 28.3% year-over-year. The average selling price for all home types combined was $1,163,323 – up by 21.7% compared to last year’s November numbers.
The condo market has influenced a major difference this year compared to last as it continues to tighten and experience an acceleration in price growth, particularly in suburban areas. These effects speak to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this past year. With lower price points on average, the townhome and condo markets will remain prevalent as population growth continues to increase over the next two years.
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.