Experts say Toronto's scorching housing market is hotter than ever
Toronto's sizzling real estate market may be entering its annual winter chill, but that doesn't mean we can expect a broader market cooldown to persist, the market still simmering through an expected seasonal dip.
Extreme highs in housing prices, sales activity, and demand have Remax agents suggesting that despite the expected seasonal cooldown, Toronto is experiencing "hotter-than-ever conditions" in autumn 2021.
As usual, real estate experts are pointing to a critically low supply of homes, which fuels competition and drives up housing prices.
Even with the eternal procession of new residential developments reshaping skylines around the region, the GTA just isn't building the among of housing necessary to snap us out of the insanity that residential real estate has devolved into in the 416 and 905.
Remax's blog states that "Industry experts contend that the primary panacea to cooling down this environment and ensuring more young families and first-time homebuyers can attain a home is more housing supply."
An extremely tight sellers' market is nothing new in Toronto proper, and it isn't improving based on the latest figures.
The Toronto Regional Real Estate Board (TRREB) reports that the number of active residential listings in the city of Toronto declined sharply in September, falling 43.85 per cent year-over-year, while new listings plummeted by 31.36 per cent.
WATCH “AT-A-GLANCE”! View TRREB’s monthly Market Report for September Sales capturing total residential transactions, total new listings, & average selling price with a focus on year-over-year, previous months and seasonally adjusted stats. FULL REPORT🔗 https://t.co/KiPbvOQBp6 pic.twitter.com/5cxaZOYth0— Toronto Regional Real Estate Board (@TheReal_TRREB) October 7, 2021
If new listings disappeared altogether, it would take only 1.4 months of sales at the current level to exhaust every single unit for sale in the city.
Such a low supply of inventory contributes to the out-of-control price growth making housing even less accessible to the masses, the average selling price for all home categories rising by a staggering 18.3 per cent to $1,136,280.
There could be some help on the horizon, as new housing construction is picking up steam in the city and surrounding region.
The Canada Mortgage and Housing Corporation (CMHC) reports a 65.24 per cent year-over-year leap in housing starts in September, with shovels going into the ground for over 4,600 new units in that month alone.
Construction of new housing at the current rate might still not be enough to correct the market, with some predictions of tight conditions remaining well into the future.
These experts pin the affordability crisis on the rules, regulations, and fees that add to approval and construction timelines, placing the pressure squarely on politicians to clear an easier path for housing starts.
The removal of travel restrictions and a return to pre-lockdown immigration levels are expected to bring even more demand to the Toronto market, with 1.2 million newcomers to the country projected over the next three years, and many expected to settle in the Toronto area.
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