Home prices continue to rise in Toronto across every sector of the market as demand mounts, supply levels dwindle, and new listings drop by a whopping 43 per cent to reach their lowest point in 10 years.
New figures released Friday from the Toronto Regional Real Estate Board (TRREB) show that market conditions grew tighter in August, pushing the average price for all home types combined up 12.6 per cent, year-over-year, to reach $1,070,911.
Prices for detached homes in the 905 region saw the highest spike in prices on a yearly basis, rising 25.6 per cent in August to reach a new average of $1,365,973.
While sales figures were down for the fourth month in a row, TRREB actually reported the third-highest sales result on record for August.
“While the market has taken its regular summer breather, it is clear that the demand for ownership housing remains strong. At the same time, the supply of listings is down,” reads the board’s latest market watch report.
These two factors have combined to make for “sustained competition between buyers, resulting in double-digit annual increases in selling prices.”
Detached homes are still rising the fastest in value, but condos are now seeing price growth well above the rate of inflation now too — a far cry from where we were this past fall, when average prices actually started falling on a monthly basis.
That trend didn’t last very long and is expected to continue in the opposite direction for the rest of the year as office workers return to the downtown core, and students return to post-secondary schools. House prices are similarly expected to continue trending upward amid heavy demand and critically-low supply levels.
“The fact that new listings were at the lowest level for the past decade is alarming. It is clear that the supply of homes is not keeping pace with demand, and this situation will become worse once immigration into Canada resumes,” said TRREB President Kevin Crigger of the situation.
“The federal parties vying for office in the upcoming federal election have all made housing supply and affordability a focal point. Working with provincial and municipal levels of government on solving supply-related issues is much more important to affordability than interfering with consumer choice during the home buying and selling offer process or revisiting demand-side policies that will at best have a short-term impact on market conditions.”
“There has been no relief on the supply side for home buyers, in fact, competition between these buyers have increased,” said the board’s Chief Market Analyst Jason Mercer similarly.
“As we move toward 2022, expect market conditions to become tighter as population growth in the GTA starts to trend back to pre-COVID levels.”