The latest Toronto real estate market statistics show the trend of rising prices and shrinking supply continue, as buyers are poised to jump on homes for sale but tight conditions are making it near impossible.
According to the September report issued by the Toronto Regional Real Estate Board (TRREB), there were 9,046 sales over the past month down 18 per cent from the record-setting stats from the same month in 2020. But, sales are down because there is nothing to buy. Apparently, there are 34 per cent fewer listings.
The tight conditions are inflating prices as well. So there are fewer homes to buy and increased competition and price. The MLS® Home Price Index Composite Benchmark was up by 19.1 per cent year-over-year in September 2021. The average selling price for all home types combined was up by 18.3 per cent year-over-year to $1,136,280.
“Price growth in September continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses,” said Jason Mercer, chief market analyst at TRREB. “However, competition between buyers for condo apartments has picked up markedly over the past year, which has led to an acceleration in price growth over the past few months as first-time buyers re-entered the ownership market. Look for this trend to continue.”
Sales and prices are also up when compared to August.
The vibrancy in the market has a lot to do with the continued comeback of the condo market, which is something that CIBC economist Benjamin Tal noted in our most recent real estate roundtable on the fall market.
“The improvement in the highrise market reflects the impact of the opening up as cities are back, and the realization that the condo market is the only affordable change,” Tal said.
Condo sales are up year-over-year 13 per cent in this sector of the market throughout the GTA. The only sector to show an increase in the number of sales. Prices are also up to the tune of 11.6 per cent overall.
“Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property,” said Kevin Crigger, TRREB president. “With new listings in September down by one-third compared to last year, purchasing a home for many is easier said than done.”