The Greater Toronto Area is not seeing any signs of the real estate market slowing down. The month of September is the transition month from the slower summer market to the busier fall market. Every year we see a jump in sales, average sale price, and listings after the Labour Day weekend, and this year September was no different. Sales increased in comparison to August and this September was the third-highest September on record. What was surprising though has that we did not see a substantial increase in new listings.
Greater Toronto Area Market Update
We had a total of 9,046 sales in the month of September which was up from August (8,596 sales) but in comparison to September of 2020 sales were down by 18% primarily due to low listings which resulted in a price increase of 18.3% compared to September 2020. Active listings in September 2021 are down by 49.5% in comparison to September 2020 and new listings were down 34% compared to September 2020. The condo market has continued to bounce back and we are seeing increased sales of condos and increased prices as well. Demand has remained very strong throughout the month of September with many qualified buyers trying to buy a home but unable to find a suitable property and losing out on properties in bidding wars. Making it quite challenging for buyers. We continue to see the low supply of new listings which is making it quite frustrating for buyers.
Government policies to make housing more affordable or suppress demand have had absolutely no impact. Our current housing challenge is not an issue that can be solved by one level of government alone. It is projected that the GTA will require an additional one million additional housing over the next 10 years to accommodate increased population growth. The federal, provincial, and municipal governments need to collaborate to address the housing challenge that we are all facing.
The housing shortage continues to place upward pressure on home prices which is making it very challenging for first-time buyers to get into the housing market. For those that already own a home and want to move the challenge is much more manageable as their existing property is increasing in value and hence has little or no impact on their ability to move up to their next home.
If you are thinking of buying, selling, or investing in either a home or cottage reach out, and let’s chat.
The average selling price of all home types is now $1,136,280 which is an 18.3% increase in price in comparison to September 2020. The largest price increases continued to be in the lowrise housing types (detached, semi-detached, and townhomes) but competition among condo buyers has seen a significant increase in the past year.
In August due to the reduced number of listings and buyers still searching for a home it felt like we were returning to the January – March 2021 frenzied real estate market with many homes selling in bidding wars with multiple offers. This trend will most likely continue into 2022 as immigration opens up and we experience population growth.
If you are considering buying a home now is the time to get into the market if at all possible as it will most likely be some time before we see the real estate market start to cool off.
Are you thinking of buying, or selling reach out, and let’s begin the process?