Prospective homebuyers in the Greater Toronto Area found dramatically fewer homes on the market last month than they did a year ago. October was another record-setting month for Toronto and the GTA with the average year-over-year selling price up 19.3% to $1,155,345. The Toronto Regional Real Estate Board said that 9,783 homes in the region changed hands last month, down nearly 7% from a record 10,503 in October 2020. Despite the fall, the result was still the second-highest level for the month of October even as the number of new listings fell by about a third compared with a year ago.
TRREB interpreted the numbers as a sign of tightening conditions in a market that is already among Canada’s most expensive and prone to some of the country’s most fierce bidding wars. House prices continued to lead the market as they have throughout the pandemic, but condos also showed double-digit price growth in October. The average price for a condo in Toronto is $739,647 and in the GTA $703,698 TRREB’s data showed new listings decreased to 11,740 in October, a more than 34% drop from 17,806 during the same month last year.
Detached homes hit an average price of $1.54 million in the GTA soaring 27% compared to last October. Detached homes in Toronto continued to be the most expensive residential properties selling for an average of $1.78 million up 21%. In the City of Toronto, home prices moved quickly but not quite as fast as they did in the 905 region. Compared to the same month last year, a typical home is now 15.6% ($155,600) higher. Extremely fast growth but this tells us suburban home prices are growing even faster.
Rising interest rates, something the Bank of Canada signaled last week could happen as early as spring and could push some home buyers to the sidelines if they are on the edge of being able to afford a home. Adding to that, over the next year, we’re set to see much stronger population growth as borders start to open more and allow for more immigration.