TORONTO – House prices in Toronto are rising again. On an annual basis, the increase is almost 20% according to the analysis of TRREB, Toronto Regional Real Estate Board. Reason: Prospective homebuyers in the Greater Toronto Area found significantly fewer homes on the market last month than they did a year ago, thereby driving down sales and, consequently, raising the prices of the few properties available. 

“Everyone who wanted to get out of their space last year had that ‘itch’ and they did, so there are now fewer people who want to get out of their space,” Davelle Morrison – a broker of Toronto with Bosley Real Estate Ltd – told Global News.

TRREB data shows that new quotes fell to 11,740 in October, a drop of more than 34% from 17,806 in the same month last year. Active ads last month were 7,750 compared to 17,313 in October 2020. Lowering prices are unlikely for those looking for a home, although many are still benefiting from the lower interest rates introduced to quell the impacts of the pandemic on the economy.

The average price of a home sold therefore increased nearly 20% to nearly $ 1.2 million in October, compared to $ 968,535 in the same month last year for the same home, TRREB notes.

Single-family homes averaged over $ 1.5 million and semi-detached homes reached nearly $ 1.2 million, while townhouses reached $ 957,103 and condos reached $ 703,698. This equates to year-on-year price growth of nearly 28% for single-family homes, 24% for semi-detached houses, 28% for terraced houses and 13% for condos.

“There is a lot of activity and there are a lot of people out there trying to find apartments,” Morrison said. “Condos are becoming so popular simply because they are cheaper than houses in Toronto.”

Meanwhile, TRREB President Kevin Crigger said that rising prices in all types of housing highlights the market’s immediate need for more supply. “The only sustainable way to address the affordability of housing in the GTA is to address the persistent mismatch between supply and demand,” he said.

Pic by Lucas Wendt from Pixabay