Canada's Condominium Magazine
In the first full month of market activity since the federal government tightened mortgage eligibility rules in October in an attempt to quell demand, Toronto homebuyers continued to buy in increasing numbers and home prices continued to rise. The Toronto Real Estate Board reports that the number of homes sold through its MLS system in November was up 16.5 per cent compared to a year ago. Sales of all home types were up. Prices were also up sharply. The average selling price for all home types came in at $776,684, an increase of 22.7 per cent over last year.
Condominium sales in both the City of Toronto and the 905 region were up significantly, rising 27.9 per cent and 20.8 per cent respectively, for a total of 2,409 sales. Price growth in the condo resale market was also strong, with increases of 13.5 per cent in Toronto and 18.9 per cent in the 905. The average selling price of a resale condo was $471,256 in Toronto, $324,792 in the 905 area.
TREB president Larry Cerqua commented, as is now usual, that while home buying activity remained strong in November, many would-be buyers continued to be “frustrated” by the lack of listings. Annual sales growth once again outstripped growth in new listings, which were lower than one year ago in the City of Toronto, causing sellers’ market conditions and “robust” rates of price growth.
Recent policy initiatives seeking to address strong home price growth have focused on demand. Going forward, more emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types, especially in the low-rise market segments.
Commenting on the recent policy initiatives from the federal government, which were intended to address this strong price growth by reducing demand, TREB analyst Jason Mercer said that in future, more emphasis needs to be placed on supply, with solutions that “alleviate the lack of inventory” for all home types, especially in the low-rise market segments.
Once again, the greatest price gains were seen in the areas surrounding Toronto, led by Durham Region, with a 25.4 per cent increase, followed by York (24.8 per cent), Orangeville (23.25 per cent), Halton (21.5 per cent), Peel (21 per cent) and Toronto (16.5 per cent).
In January, TREB will release its second annual report on the current state and future direction of the housing market in the Greater Golden Horseshoe. It will include results of consumer surveys conducted by Ipsos, covering consumer intentions, buyer profiles and foreign activity. A study on transportation infrastructure and housing affordability will also be presented.