Toronto's competitive condo market keeps pushing prices further into the stratosphere
It isn't cheap to buy a condo or any real estate in Toronto, and even on the way out of a pandemic that crippled the housing market, it is only getting more expensive to live in the city.
According to the latest report from the Toronto Regional Real Estate Board (TRREB), the combined Greater Toronto Area (GTA) saw 9,046 home sales in September, keeping with the typical seasonal trend of increased activity exiting the slower summer months.
Toronto recorded 3,397 sales, including 1,792 condominium units, still the hottest commodity in the 416 market.
Surging condo sales helped factor into a much tighter housing market in September. Still, the total number of sales dropped region-wide by 18 per cent from the record set last September.
TRREB attributes this in part to the plummeting number of listings, which fell 34 per cent year-over-year.
"Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property. With new listings in September down by one third compared to last year, purchasing a home for many is easier said than done," said Kevin Crigger, TRREB President.
"The lack of housing supply and choice has reached a critical juncture. band-aid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution."
Competitive markets translate to rising housing prices, and yet again, the average selling price for a home in the GTA was up. Way up.
A home in the region will now cost on average 18.3 per cent more than it did just one year ago, the region-wide home price average now a staggering $1,136,280.
While price growth in Toronto was strongest in the detached and semi-detached markets, the city's condo market saw a moderate jump in average price, climbing 8.5 per cent year-over-year to $744,730.
Toronto remains in hot demand, but the soaring 905 housing market is witnessing a crazy acceleration in home prices, including a 31.4 per cent leap in detached home prices.
Still, Toronto remains a much more expensive place to live, home prices reaching an average of $1,022,227 versus $931,456 in the 905.
The region-wide seasonally-adjusted home price has now increased during ten of the last twelve months, even through the third and fourth waves of the pandemic. TREEB is attributing this price acceleration to intense competition in the market.
"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, TRREB Chief Market Analyst.
"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."
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