Toronto area home prices, including all types of homes and condos, hit a new average high of $1.14 million in September — an 18.3 percent year-on-year increase for all types of homes, including condominiums.
The continued rise in home prices prompted what Toronto Regional Real Estate Board (TRREB) President Kevin Krieger called “a turning point” in the lack of housing supply in the region.
September prices rose slightly from August’s average selling price and were up 2.5 percent from this year’s May peak of $1.11 million.
But as the number of new listings dropped by 34 percent, sales also fell 18 percent from last year’s September record.
“With new listings in September down a third from last year, it’s easier for many people to buy a home,” Krieger said. “Demand has been incredibly strong throughout September with many qualified buyers who will buy homes tomorrow provided they find a suitable property.”
As they have during the pandemic, homes continued to lead the way in price increases with detached homes up 31 percent year over year in 905 communities and 19.5 percent higher in Toronto.
The median sale price of a detached home in the suburbs was $1.46 million. In the city it was $1.78 million.
But condo prices, which had lagged earlier in the pandemic, continued to climb — up by 8.5 percent to $744,730 in surrounding communities by an average of $634,111 in surrounding communities and by 8.5 percent in Toronto.
“Competition among buyers for condo apartments has increased significantly over the past year, leading to a rise in prices over the past few months as first-time buyers re-enter the ownership market. This trend is likely to continue. Watch out for it,” said Jason Mercer, chief market analyst for the Real Estate Board.
The new listings have actually increased slightly to 139,616 this year from 121,573 for the same period last year.
On a year-on-year basis, sales have also increased to 97,012 from 68,681 last year. But market activity essentially stalled during spring 2020 following the first pandemic lockdown in March.
TRREB CEO John DiMichel said housing, a key issue in last month’s federal election, is poised to become a key issue in next year’s provincial and municipal elections.
“From a policy standpoint, the heavy lifting needed to bring more housing online happens at the provincial and local levels,” he said.