Real estate prices show another record in Toronto, while a market supply reaches critical juncture
Last month, housing affordability in the Greater Toronto Area became even worse, with sharply growing home prices and declining market supply.
According to Toronto Regional Real Estate Board (TRREB), the average home price in September showed an annual increase by 18.3% to a record high of $1,136,280.
At the same time, home sales were down by 18% during the same period.
The number of active listings fell by half, with only 9,191 properties listed for sale at the end of September. Meanwhile, new listings were down by 34% from a year ago.
“The lack of market supply has reached a critical juncture,” – noted Kevin Crigger, president of TRREB.
“Demand is still extremely strong, and many qualified buyers would make a purchase if they could find a suitable property. As the new listings last month fell by one third compared to last year, a home purchase became a serious problem for many,” – he added.
TRREB says although the largest price gains were seen in the sectors of detached and townhouses, competition between condo buyers has seen a significant rise, and the trend may go on.
Toronto’s red-hot market presents a strong challenge for the re-elected federal Liberals, who focused their campaign on promising to improve affordability for first-time homebuyers.
“Temporary policies to artificially reduce the market demand have not been effective. This issue can’t be solved by one level of government. We need a collaboration of federal, provincial, and local governments,” – Crigger noted.
TRREB MLS System Sales and Average Price by Home Type September 1-3-, 2021
| Sales | Average Price | |||||
| 416 | 905 | Total | 416 | 905 | Total | |
| Detached | 895 | 3,013 | 3,908 | 1,778,928 | 1,451,471 | 1,526,465 |
| Yr./Yr.% Change | -22.6% | -31.1% | -29.3% | 19.5% | 31.4% | 28.9% |
| Semi-Detached | 325 | 499 | 824 | 1,304,504 | 991,073 | 1,114,696 |
| Yr./Yr.% Change | -22.8% | -30.2% | -27.5% | 13.9% | 25.2% | 20.8% |
| Townhouse | 365 | 1,193 | 1,558 | 930,056 | 902,853 | 909,226 |
| Yr./Yr.% Change | -8.8% | -20.0% | -17.6% | 7.2% | 26.0% | 21.5% |
| Condo Apartment | 1,792 | 872 | 2,664 | 744,730 | 634,111 | 708,521 |
| Yr./Yr.% Change | 16.0% | 7.3% | 13.0% | 8.5% | 18.0% | 11.6% |
September 2021 Year-Over-Year Per Cent Change in the MLS HPI
| Composite (All Types) | Single-Family Detached | Single-Family Attached | Townhouse | Apartment | |
| TRREB Total | 19.9% | 23.54% | 22.60% | 18.15% | 9.08% |
| Halton Region | 24.13% | 24.15% | 26.61% | 22.04% | 17.38% |
| Peel Region | 19.99% | 23.67% | 23.55% | 16.61% | 8.92% |
| City of Toronto | 10.37% | 14.28% | 12.30% | 12.26% | 7.36% |
| York Region | 22.85% | 24.71% | 25.28% | 19.93% | 13.01% |
| Durham Region | 32.18% | 32.36% | 33.39% | 31.83% | 21.55% |
| Orangeville | 22.66% | 22.75% | 24.33% | 28.37% | 7.06% |
| South Simcoe County | 32.38% | 35.50% | 40.68% | 22.74% | 17.55% |