Home sales in Toronto reached the second-highest level on record for the month of October. However, the inventory of homes for sale did not keep up with demand. The number of new listings was down by approximately one-third compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.
The only sustainable way to address housing affordability in Toronto is to deal with the persistent mismatch between demand and supply. Demand isn’t going away. And that’s why all three levels of government need to focus on supply. The federal government has stated that collaboration with provinces and municipalities is required. This collaboration could be spearheaded, at least in part, with housing-related incentives tied to federal infrastructure investment.
The Toronto Real Estate Board reported 9,783 sales in October 2021 – down by 6.9% compared to the October 2020 record of 10,503. A strong double-digit increase in condominium apartment sales mitigated annual declines in low-rise home sales. The number of new listings entered into the system was down by almost a third over the same period, with consistent declines across all major home types.
The MLS® Home Price Index Composite Benchmark was up by 24.2% year-over-year. The average selling price for all homes combined rose by 19.3% year-over-year to $1,155,345. The low-rise market continued to drive price growth in October, but the annual price growth for condominium apartments was in the double digits as well.
The tight market conditions across all market segments and areas of Toronto is testament to the broadening scope of economic recovery in the region and household confidence that this recovery will continue. A key part of future economic development in Toronto will be the ability to provide adequate ownership and rental housing supply so that people can continue to move to the region to live, work and spend money in the local economy.
“Toronto’s Luxury Real Estate Authority”