More home sales were recorded in the Greater Toronto Area last month than in any previous October, other than a record-setting 2020. But, the inventory continues to be low, and that is driving prices up and further out of reach for many, according to the latest market report from the Toronto Regional Real Estate Board (TRREB).
According to TRREB, there were 9,783 sales recorded last month, which was down 6.9 percent from last year. The new listings on the market were down by “almost a third over the same period.” The supply issue once again drew the attention of TRREB, which continues to call for an increase in housing supply to keep home prices within reach.
“The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply. Demand isn’t going away,” said TRREB president Kevin Crigger. “And that’s why all three levels of government need to focus on supply. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment.”
Home prices, based on TRREB’s benchmark, were up 24.2 percent when compared to October 2020. The average selling price for all homes combined rose by 19.3 percent year-over-year to $1,155,345.
Although the low-rise sector of the market continues to drive price growth, the condominium side of the ledger also showed double-digit price growth.
The average price for a detached home in the city of Toronto now sits at a whopping $1,784,979. But, prices continue to climb at a higher rate outside of the 416, more than doubling the Toronto growth rate and the gap in average home prices is narrowing. The average price of a detached home in the 905 is $1,459,803.
“The tight market conditions across all market segments and areas of the GTA is testament to the broadening scope of economic recovery in the region and household confidence that this recovery will continue,” said TRREB Chief Market Analyst Jason Mercer. “A key part of future economic development in the GTA will be the ability to provide adequate ownership and rental housing supply so that people can continue to move to the region to live, work and spend money in the local economy.”