Records keep on shattering as the Toronto real estate market reaches an all time high of sales & average sale price for the month of November.
All sectors saw massive year-over-year growth but semi-detached homes led the group with 23.4% appreciation compared to November 2020.
Condo's have also seen a large resurgence as the economy recovers & first-time buyers/investors re-enter the market which has resulted in the average sale price rising by 16.5% compared to the same period last year.
The issue of low inventory continues to plague the city & this is best exemplified by the 56% decrease in active listings vs. November 2020.
While there have been minor steps by the City of Toronto to help expedite the approvals process for new developments recently, there are still too many barriers in place that inhibit the rapid growth that we need to satisfy the large amount of demand for housing.
Condos are naturally seen as the best option for adding inventory to the real estate market but allowing certain residential neighbourhoods like Leslieville, Annex, Little Italy, etc. to increase their redevelopment density could lead to more supply & affordable options.
Stats
Here's the stat breakdown for November 2021 in the City of Toronto
- Sales | 9017 (+3.3% vs. 2020)
- New Listings | 10,036 (-13.2% vs. 2020)
- Active Listings | 6086 (-55.9% vs. 2020)
- Average price | $1,163,323 (+21.7% vs. 2020)
- Detached | Average price = $1,807,983 (+22.3%) | Sales = 918 (-1.2%)
- Semi-Detached | Average price = $1,431,988 (+23.4%) | Sales = 283 (-15.8%)
- Townhouse | Average price = $981,759 (+19.7%) | Sales = 381 (+5.5%)
- Condo | Average price = $745,951 (+16.5%) | Sales = 1981 (+44.3%)
Demand continues to surge most in the housing sector for detached & semi-detached properties however townhomes & condos are not far behind.
This largely has to do with the fact that many people are being priced out of the housing market so the next most affordable option is either a townhouse or a condo.
One of the stats that stands out most to me is that the number of condo sales increased by 44% compared to the same time last year.
It was only a matter of time before the condo market recovered from the substantial drop in demand that occurred at the onset of the COVID19 pandemic, however it is quite impressive to see how quickly it has rebounded to prices & sale amounts similar to those experienced back in 2019.
Summary
While I typically say that December & January are the slowest times of the year, I'm not as confident saying that for the upcoming months.
The severe lack of supply paired with a increasing amount of demand means that many buyers don't have the chance to take this time off like they could in years past as prices continue to rise rapidly & there is the looming threat of interest rates rising further in 2022.
What do you think is going to happen with the real estate market in Toronto next year?
Let me know in the comments section below!
Rylie C.
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