Home sales in the Greater Toronto Area broke a record last month, marking the best November for sales yet according to the latest market data from the Toronto Regional Real Estate Board (TRREB) that was released on Friday.
However, supply levels remain a persistent problem as the available quantity of homes for sale was down notably compared to last year. By contrast, the average selling price for all home types rose by more than 20 per cent compared to 2020, a new all-time high.
“A key difference this year compared to last year, is how the condo segment continues to tighten and experience an acceleration in price growth, particularly in suburban areas,” said Jason Mercer, TRREB’s chief market analyst, in a press release. “This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year.”
Here’s what we know about the latest from TRREB.
Sales grow to new record for November
Throughout November, 9,017 home sales transacted through the MLS system, 3.3 per cent above last year. This resulted in a new, all-time sales record for the month of November according to TRREB.
Most of last month’s sales were recorded within the 905 region, where 5,430 properties exchanged hands. The remaining 3,587 sales took place in the City of Toronto during November.
Comparing property types, detached listings attracted the highest number of sales with 3,857 transactions across the GTA. However, this was a 8.2 per cent decrease in comparison to the quantity of detached sales that took place in the same month in 2020.
Sales for semi-detached and townhouse properties dropped 14.7 per cent and 4.7 per cent on an annual basis, while the number of condos sold (2,868) in November increased 41.6 per cent from 2020 to 2021.
November sees double-digit drop in home supply
Although sales climbed to a new monthly record in November, available home supply substantially dropped.
New listings were down 13.2 per cent year-over-year, falling from 11,556 to 10,036 properties over the course of a year. Double-digit declines were also reported for low-rise and condominium housing types.
“Governments at all levels must 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,” said TRREB president Kevin Crigger in the press release.
Average GTA selling price climbs to over $1.1 million
The average selling price for a home in the GTA climbed to a new all-time high in November.
According to TRREB’s data, the average selling price for all home types grew 21.7 per cent year-over-year from $955,889 to $1,163,323.
By housing type, the biggest price increases were noted in the detached and semi-detached segments.
Across the GTA, the cost of a detached dwelling rose 30.3 per cent yearly to $1,567,832, while semi-detached properties saw prices increase 27.3 per cent annually to $1,206,016. Combining the 905 and 416 regions, condominium apartments reported the least amount of price growth, rising 18 per cent year-over-year to $715,104.
In November, the MLS Home Price Index composite benchmark was up by 28.3 per cent annually.
Mid-density, diverse housing choices needed: TRREB
In TRREB’s latest market release, Crigger pointed out that the GTA remains a primary destination for immigrants and a central point for the Canadian economy. Short-term “bandaid policies to artificially
suppress demand,” have been the focus of governments for a while, which Crigger explained have not been successful.
“Current market activity highlights decisively that these policies do not work, and unless governments work together to cut red tape, streamline the approval processes, and incentivize mid-density housing, ongoing housing affordability challenges will escalate,” said Crigger.
As population and demand for housing continues to grow in the GTA, TRREB CEO John DiMichele explained that it will be important to “support the fabric of our region’s neighbourhoods.”
“This can be partially accomplished by bringing on line a greater diversity of housing choices,” he said.
