Toronto real estate prices reach another record high level pushed by restrained supply
According to the Toronto Regional Real Estate Board (TRREB), the average home price in the GTA reached a record high level in October, as competition among buyers kept growing.
Last month, there were 9,783 properties sold, marking an 8% increase from September and a 7% decline from October 2020.
Meanwhile, the number of new listings was down by 13% from the previous month and by 34% from a year ago.
“The only effective way to solve the issue of housing affordability in the GTA is to balance supply and demand. The deal is that demand will not go away, so all three levels of government should focus on providing enough supply,” – noted TRREB President Kevin Crigger.
Strong demand combined with a restrained supply pushed real estate prices to a record high level with the average home price reaching $1,155,345 last month.
As financial markets expect the central bank to start raising rates in the new year, many economists are trying to predict the potential influence on the housing market activity.
BMO Economics Senior Economist Robert Kavcic isn’t sure whether hot real estate markets may show “one final activity hike before slowing down.”
He says the historically popular five-year fixed mortgage rate has already started growing. In addition to it, Kavcic expects the Bank of Canada to start raising rates sooner and more aggressively than many could predict.
TRREB MLS System Sales and Average Price by Home Type October 1-3-, 2021
| Sales | Average Price | |||||
| 416 | 905 | Total | 416 | 905 | Total | |
| Detached | 1,061 | 3,218 | 4,279 | 1,784,979 | 1,459,803 | 1,540,432 |
| Yr./Yr.% Change | -13.1% | -19.9% | -18.3% | 21.2% | 29.7% | 27.7% |
| Semi-Detached | 367 | 511 | 878 | 1,322,229 | 1,029,347 | 1,151,770 |
| Yr./Yr.% Change | -11.1% | -20.9% | -17.1% | 14.4% | 31.5% | 24.1% |
| Townhouse | 428 | 1,201 | 1,629 | 1,025,257 | 932,815 | 957,103 |
| Yr./Yr.% Change | 5.4% | -15.8% | -11.1% | 23.5% | 28.6% | 27.9% |
| Condo Apartment | 1,913 | 986 | 2,899 | 739,647 | 633,951 | 703,698 |
| Yr./Yr.% Change | 33.7% | 20.5% | 28.9% | 10.6% | 17.0% | 13.0% |
October 2021 Year-Over-Year Per Cent Change in the MLS HPI
| Composite (All Types) | Single-Family Detached | Single-Family Attached | Townhouse | Apartment | |
| TRREB Total | 24.21% | 28.50% | 27.90% | 21.00% | 14.78% |
| Halton Region | 31.76% | 33.70% | 36.19% | 25.12% | 19.87% |
| Peel Region | 24.58% | 28.21% | 28.56% | 20.15% | 13.33% |
| City of Toronto | 15.63% | 18.74% | 16.99% | 13.95% | 13.71% |
| York Region | 27.46% | 29.00% | 29.80% | 25.72% | 17.90% |
| Durham Region | 35.98% | 36.21% | 38.08% | 33.24% | 26.88% |
| Orangeville | 26.06% | 26.07% | 27.08% | 30.98% | 11.39% |
| South Simcoe County | 34.63% | 37.36% | 33.91% | 27.01% | 22.19% |