GTA November 2021 Real Estate Market Update
Tags: Greater Toronto Area real estate MARKET uPDATE, Vaughan rEAL eSTATE, bEST Vaughan rEALTOR, bEST tORONTO rEAL eSTATE aGENT
By Sylvia Smith
We experienced another record month for real estate sales in the month of November! Sales volumes and average prices reached an all-time high for the month. Demand for housing continued to be high but new listings were substantially down compared to November 2020 and placing pressure on house and condo prices.
Greater Toronto Area (GTA) Market Update
The average sale price set a new record of $1,163,323 which was up 21.7% compared to November 2020. The continued pressure on price is primarily due to the low supply of new listings accompanied by high demand. In November 2020 we had 13,798 active listings but in November 2021 we had 6,086 a 55.9% drop. We have continued to experience price increases across both the suburbs and the City of Toronto but the suburbs continue to see larger price increases.
In November all housing types in both the City of Toronto and the suburbs experienced double-digit percentage price increases. But the suburbs continued to experience larger price increases than the City of Toronto. Detached homes were previously seeing higher price increases than semis and townhomes but in November we saw the increases aligning across these 3 housing types.
A key difference from 2020 is in the condo market which is also now experiencing increased demand and price increases in both the suburbs and in the City of Toronto. The speaks to first-time buyers moving back to the market in a big way. There is currently no doubt that the sluggish condo market we experienced in 2020 has now bounced back. The condominium and townhome housing segments with the lower prices on average will remain very popular as we continue to experience population growth over the next 2 years.
2022 Housing Market Outlook
It is expected that we will continue to be in a seller’s market right into 2022 however the aggressive price increase that we have been experiencing will most likely taper off a little – it is projected that we will see anywhere between 9.2% - 10% real estate price increases in 2022.
The economic indicators are implying that the market will remain strong in 2022. Interest rates may start to creep up but will still remain at an all-time historically low. Immigration will continue and as a result demand for real estate will remain high.
I frequently get asked by clients when is the best time to sell and buy. If you already own real estate – the right time to sell is now. In reality, if you are selling and buying it doesn’t really matter when you sell. If it is a seller’s market, you will sell your home for more and the next home will also cost a bit more but it is all relative – vis-versa, if prices are down the next home, will cost less so it all evens out when you already own real estate.
However, if you are a first-time buyer – do everything you can to get into the market. Sylvia Smith recommends buying what you can afford and start building equity and continue to save – owning real estate is in essence a forced saving processing as you gradually pay down your mortgage and the property will increase in price over time.
Do you have any real estate questions? Reach out it would be my pleasure to help.