November was another record-setting month for real estate in the Greater Toronto Area, with sales and average selling prices climbing to new highs as available listings continued declining across all market segments, intensifying the region's supply shortage.
Last month, home prices hit a new all-time high, soaring by nearly 22% annually, as the 9,017 recorded transactions also marked a new sales high for the month of November, the Toronto Regional Real Estate Board (TRREB) announced Friday.
For the sixth continuous month, new listings dropped on a year-over-year basis — down by 13.2% to 10,036 in November, with double-digit declines for low-rise home types and condominium apartments.
The lack of new supply drove prices even higher, with the average selling price for all home types -- including detached, semi-detached, townhouses, and condos -- rising to $1,163,323, up 21.7% compared to last November’s average of $955,889 and up about $8,000 month-over-month.
November's numbers were yet another indicator that the GTA is in dire need of more housing stock and that more government action is needed.
“Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future," said TRREB President, Kevin Crigger.
"The GTA remains the primary destination for new immigrants and is at the centre of the Canadian economy. For far too long, governments have focused on short-term bandaid policies to artificially suppress demand. Current market activity highlights decisively that these policies do not work, and unless governments work together to cut red tape, streamline the approval processes, and incentivize mid-density housing, ongoing housing affordability challenges will escalate."
However, Crigger did commend the City of Toronto for moving forward with initiatives to help the creation of more mid-density home types, including the development of smaller apartment buildings in neighbourhoods that don’t currently allow them.
While detached, semi-detached, and townhouses saw year-over-year price gains in the neighbourhood of 30% in areas outside the city, the condo market has become tighter this year, with average prices also accelerating, particularly in the suburbs, said TRREB Chief Market Analyst Jason Mercer.
“This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year. The condo and townhouse segments, with lower price points on average, will remain popular as population growth picks up over the next two years,” said Mercer.
In November, condo apartments sold for an average of $715,104 in the GTA, an 18% rise from the same time last year. Price growth was the strongest in the 905 communities surrounding Toronto, up by 21% year-over-year to $646,211. Condo prices also rose by 16.5% in the city of Toronto to an average of $745,951.
On the other hand, detached houses sold for 30.3% more than a year ago, averaging $1,567,832 million regionwide. Detached houses in the City of Toronto now sell for $1,807,983 on average, a 22.3% increase. In the 905 areas, detached homes sold for 32.7% more than a year earlier -- averaging $1,492,821.
“As population and housing demand continues to grow in the GTA, it will be important to support the fabric of our region’s neighbourhoods," said TRREB CEO John DiMichele. "This can be partially accomplished by bringing online a greater diversity of housing choices. However, in addition, local businesses also need support."
DiMichele added that the board was encouraged to see the City of Toronto approve the new small business property tax class, which he believes will be an important tool for post-pandemic recovery.