With the Fall market in full swing, the question is will Toronto home-buyer witness another double-digit price increase on the sticker price?
In the month of October, Homeowners in the Greater Toronto Area listed their property in record numbers, reaching the second-highest level on record for the month of October.
However, with the influx of homes for sale, the demand for housing continues to strip away the available inventory. The number of new listings was down by approximately one-third compared to October 2020. The housing demand tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double-digits, including for the resurgent condominium apartments.
“The only truly sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. We know well, the demand isn’t going away. This is why all three levels of government need to maintain focus on the supply of housing. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment. What is hindering the collaboration is red tape and politics. In a recent memo between the City of Toronto and Metrolinx, who address transportation services such as the GO and TTC, the City of Toronto requested additional housing above the new Ontario-line subway extension – Metrolinx failed to consider the request. We need all levels to understand the humanitarian consequences lack of housing will have on the GTA ” said Kamran Ebrahimi of NuVilla Group.
The average selling price for all homes combined rose by 19.3 percent year-over-year to $1,155,345. The low-rise market continued to drive price growth in October, but the annual price growth for condominium apartments was in the double digits as well. The reaction to this increase reported 9,783 sales through Toronto real estate board in October 2021 – down by 6.9 percent compared to the October 2020 record of 10,503.
The 416 & the 905:
Everyone wants to purchase a detached home, in some areas, this may not be the case. However, on average within the 905-area, Semi-detached and Detached homes noticed a 30% increase since October 2020. The same is said for Townhomes, at 29%; and the Condo Apartments leaped 17% for the same time period. The 905 is on pace to advance ahead of the 416 home prices.
The 416 area has a great advantage when it comes to Condo apartments, as the supply is mature compared to the growing 905. This is why, in contrast to the lower sales within other property types, Condo Apartments saw a 33.7% increase in the number of sales, compared to last year. As well, the average price increased by just over 10%. Townhomes in the 416 noticed an increase in sales as well, with 5% over last year, the average price fetched 23.5% more this year, compared to the last October.
When we spoke with The Toronto Regional Real Estate Board’s Chief Market Analyst Jason Mercer, for his thoughts, he responded “the tight market conditions across all market segments and areas of the GTA is testament to the broadening scope of economic recovery in the region and household confidence that this recovery will continue. A key part of future economic development in the GTA will be the ability to provide adequate ownership and rental housing supply so that people can continue to move to the region to live, work, and spend money in the local economy.”
A strong double-digit increase in condominium apartment sales mitigated annual declines in low-rise home sales. The number of new listings entered into the system was down by almost a third over the same period, with consistent declines across all major home types. Our Brokers at Nuvilla Group, predict to continue seeing the greater demand increase in new pre-build housing. One example of this demand is at one of our Platinum Sales Launch Event, in which a Downtown Condo in Toronto sold all 219 suites during the four days of the Platinum Sales Launch Event.
Overall, for all our clients’ who purchased last year, congratulations ongoing in the direction of homeownership. For home-buyers who are finding this market difficult to enter, we suggest working with a professional who is active in the field and speaking with a Mortgage Advisor who has access to various Lenders. Their respective experience will guide you through the challenges, and coach you on the best approach when it comes to your purchase offer.
If you have plans to purchase your next home in the new year, feel free to reach out to one of our Brokers, for a complimentary home-buyer consultation by emailing us at info@NuVilla.ca