Real estate prices reach record high level in Toronto once again
November was another record-setting month for the real estate sector of the Greater Toronto Area.
According to the recent report by Toronto Regional Real Estate Board data (TRREB), housing sales were up by 3.3% last month on a year-over-year basis, reaching 9,017 transactions and marking another record for the month.
The GTA condo sector reported the largest sales increase of 41.6%. TRREB says such numbers may point to the fact that first-time buyers are returning to the market amid the on-going economic recovery.
At the same time, new listings were down by 13.2% annually, with double-digit drops seen in the sectors of detached and condo units.
“The governments have been focusing on short-term measures aimed at artificial suppression of demand for too long,” – noted Kevin Crigger, president of TRREB.
“Today’s market activity shows vividly that these measures don’t work. Unless governments work together to reduce red tape, simplify the approval processes, and encourage mid-density housing, the current affordability issue will become worse.”
In addition to it, buyers had to pay more for their properties than ever, with the average selling price in the GTA skyrocketing to $1,163,323 last month and marking almost a 22% annual increase.
Some specialists believe that certain buyers might have hurried to enter the market and lock in mortgage pre-approvals at lower rates while it’s still possible.
According to Capital Economics Senior Economist Stephen Brown, the national home prices may go up even higher this month as this trend goes on. However, he expects a significant slowdown in home price growth as affordability is quite poor amid higher mortgage rates.
“Real estate prices remain extremely stretched compared to affordability and that gap will grow as mortgage rates go up,” – Brown added.
Summary of TRREB MLS System Sales and Average Price by Home Type November 1-30, 2021
|Sales||Average Price||New Listings||Sales||Average Price||New Listings|
|City of Toronto (“416”)||3,587||1,096,736||4,249||3,024||979,460||5,113|
|Rest of GTA (“905”)||5,430||1,207,310||5,787||5,704||943,392||6,443|
TRREB MLS System Sales and Average Price by Home Type November 1-30, 2021