It's been another month for Toronto real estate market and it continues to remain tight as ever. Despite many predictions on the crash and questions on when the bubble will pop, the market continues to carry on with increasing demand from buyers fueled by the persistent lack of inventory, low interest rates, and work from home situation.
Toronto homes lead November sales
Home sales set a record high for November with 9,017 homes sold compared to previous year's 8,728, an increase of 3.3%. This further drove prices up setting a new all-time high of $1,163,323, a huge increase of almost 22% from last year's $955,889.
This increase in average home price was strong in the city of Toronto with detached homes reaching the $1.8 million mark, with townhouse and condo prices not far behind. The demand for homes is observed for all types of housing with condo market getting tighter in suburban areas.
Home supplies likely to remain tight over the next few years
The low supply of homes in the market is likely to carry on over the next few years, as can be observed in the consistent trend in the past few months. Foreign and local students are returning to schools, and the government will continue its efforts to reach its target goal for immigrants coming into the country.
With all these factors happening in the next few months and years, it is highly likely that the housing market will remain tight as new buyers enter the market seeking home ownership and others seeking a place to rent.
Let us take a look at the numbers presented by TRREB in their latest November 2021 statistical update for GTA.
Source: TRREB December 3, 2021
Year-over-year Total Residential Transactions
November 2020 - 8,728
November 2021 - 9,017
There was an increase of 3.3% in sales compared to last year. However, for November 2021 sales result over October 2021, sales decreased by 2.5%.
October 2021 - 9,752
November 2021- 9,508
There was a decrease of 2.5% in sales compared the previous month.
The number of home sales in November 2021 increased by 3.3% on a year-over-year basis, but decreased by of 2.5% from last month.
The average selling price of homes continues its upward trend.
November 2020 - $ 955,889
November 2021 - $ 1,163,323
There was a staggering 21.7% increase in selling price compared to last year.
For the average selling price compared to the previous month, there was an increase of 2.5% for the home prices.
October 2021 - $ 1,143,855
November 2021 - $ 1,172,091
There was an increase of 2.5% in selling price compared the previous month.
Total New Listings added to the Market
November 2020 - 11,556
November 2021 - 10,036
There was a decrease of 13.2% in new listings in a year-over-year basis.
The November 2021 % Sales-to-New Listings Ratio of 90% increased by 14% compared to 76% of November last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q3/20 - 7,060
There was an increase of 10.6% in condo sales compared the previous year. There was also an increase in the average selling price for condos.
Q3/20 - $ 633,596
Q3/21- $ 689,831
There was an increase of 8.9% in average selling price compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
There was a huge increase of 30.9% in new listings compared the previous year.
From November 14 to December 12, there were a total of 536 sales in townhouses, lower by 14% compared to previous year. There were 408 new listings, also down by 7%. For the average selling price, a 1 Bd Townhouse can cost $ 542,000 which is 11% lower compared to the same month of last year. While a 2 Bd Townhouse costs $942,000, an increase of 11% compared to the previous year.
The Toronto housing market proved resilient since the start of the pandemic. Demand for homes remain steadfast, driven by economic factors and easing restrictions on the pandemic. Buyers are not likely to get any relief soon from the increasing price of homes as the market is expected to remain tight over the next few years.
If you have any question about Toronto housing market or need help buying or selling your home, contact me at 647-834-9928 or send an email to firstname.lastname@example.org