Tight GTA Housing Market Conditions Sustain Strong Price Growth

October 5, 2021 5:00 AM EDT

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TORONTO, Oct. 05, 2021 (GLOBE NEWSWIRE) -- September marked the transition from the slower summer market to the busier fall market in the Greater Toronto Area (GTA). Every year, we generally see an uptick in sales, average selling price and listings after Labour Day, and September 2021 was no different. Sales increased relative to August and were also at the third-highest mark on record for the month of September. The average selling price was up both month-over-month and year-over-year.

GTA REALTORS® reported 9,046 sales through TRREB’s MLS® System in September 2021 – up in line with the regular seasonal trend from August. Compared to last year, market conditions tightened noticeably, with sales representing a substantially higher share of listings, and a significantly lower number of new listings across the board. Resurgence in the condo market was a factor in the higher share of listings sold. The total number of sales was down 18 per cent from 2020’s record September result, in large part due to the lower number of new listings, which were down 34 per cent from the same time last year.

“Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property. With new listings in September down by one third compared to last year, purchasing a home for many is easier said than done. The lack of housing supply and choice has reached a critical juncture. Bandaid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution,” said Kevin Crigger, TRREB President.

The MLS® Home Price Index Composite Benchmark was up by 19.1 per cent year-over-year in September 2021. The average selling price for all home types combined was up by 18.3 per cent year-over-year to $1,136,280.

“Price growth in September continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses. However, competition between buyers for condo apartments has picked up markedly over the past year, which has led to an acceleration in price growth over the past few months as first-time buyers re-entered the ownership market. Look for this trend to continue,” said Jason Mercer, TRREB Chief Market Analyst.

“Housing was a key issue in last month’s federal election. Ontario provincial and municipal elections are on the horizon in 2022. Much of the heavy lifting required to bring more housing online, from a policy perspective, happens at the provincial and local levels. These levels of government need to be on the same page. This should be an important topic for debate during the upcoming elections,” said John DiMichele, TRREB CEO.

Summary of TRREB MLS® System Sales and Average Price September 1–30, 2021
 20212020
 SalesAverage PriceNewListingsSalesAverage PriceNewListings
City of Toronto ("416")3,3971,090,1965,9463,5441,022,2278,703
Rest of GTA ("905")5,6491,163,9927,5377,489931,45611,738
GTA9,0461,136,28013,48311,033960,61320,441

TRREB MLS® System Sales & Average Price by Home Type September 1–30, 2021
 SalesAverage Price
 416905Total416905Total
       
Detached8953,0133,9081,778,9281,451,4711,526,465
Yr./Yr. % Change-22.60%-31.10%-29.30%19.50%31.40%28.90%
Semi-Detached3254998241,304,504991,0731,114,696
Yr./Yr. % Change-22.80%-30.20%-27.50%13.90%25.20%20.80%
Townhouse3651,1931,558930,056902,853909,226
Yr./Yr. % Change-8.80%-20.00%-17.60%7.20%26.00%21.50%
Condo Apartment1,7928722,664744,730634,111708,521
Yr./Yr. % Change16.00%7.30%13.00%8.50%18.00%11.60%

September 2021 Year-Over-Year Per Cent Change in the MLS® HPI
 Composite(All Types)Single-FamilyDetachedSingle-FamilyAttachedTownhouseApartment
TRREB Total19.09%23.54%22.60%18.15%9.08%
Halton Region24.13%24.15%26.61%22.04%17.38%
Peel Region19.99%23.67%23.55%16.61%8.92%
City of Toronto10.37%14.28%12.30%12.26%7.36%
York Region22.85%24.71%25.28%19.93%13.01%
Durham Region32.18%32.36%33.39%31.83%21.55%
Orangeville22.66%22.75%24.33%28.37%7.06%
South Simcoe County132.38%35.50%40.68%22.74%17.55%
Source: Toronto Regional Real Estate Board 
1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth

Year-to-Date Summary of TRREB MLS® System Sales and Average Price September 2021
 20212020
 SalesAverage PriceNewListingsSalesAverage PriceNewListings
City of Toronto ("416")33,7831,047,33451,68922,599991,62445,824
Rest of GTA ("905")63,2291,096,50487,92746,082884,98475,749
GTA97,0121,079,381139,61668,681920,073121,573

YTD TRREB MLS® System Sales & Average Price by Home Type September 2021
 SalesAverage Price
 416905Total416905Total
       
Detached8,94935,29944,2481,701,6481,335,1301,409,257
Yr./Yr. % Change29.5%31.0%30.7%15.0%28.8%25.0%
Semi-Detached3,1105,8628,9721,282,510933,2551,054,319
Yr./Yr. % Change43.0%33.7%36.8%9.7%22.3%17.5%
Townhouse3,72413,17416,898925,287845,340862,959
Yr./Yr. % Change49.4%41.6%43.2%10.3%21.3%18.7%
Condo Apartment17,7968,19225,988706,240599,469672,583
Yr./Yr. % Change63.5%69.0%65.2%3.0%13.2%5.5%

Source: Toronto Regional Real Estate Board

Seasonally Adjusted TRREB MLS® Sales and Average Price1 
     
 SalesMonth-over-Month %Chg.Average PriceMonth-over-Month %Chg.
September '2010,115-5.3%$949,073-3.3%
October '209,770-3.4%$956,2440.8%
November '209,393-3.9%$964,9310.9%
December '2011,24119.7%$977,5841.3%
January '2111,6733.8%$1,008,2623.1%
February '2112,8329.9%$1,032,7842.4%
March '2112,9641.0%$1,089,0985.5%
April '2110,767-16.9%$1,051,432-3.5%
May '219,864-8.4%$1,063,7841.2%
June '219,016-8.6%$1,064,1190.0%
July '218,842-1.9%$1,076,7061.2%
August '218,649-2.2%$1,103,4682.5%
September '218,7120.7%$1,123,2771.8%
Source: Toronto Regional Real Estate Board; CREA Seasonal Adjustment. 1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends. 

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Media Inquiries:Genevieve Grant, Public Affairs Specialist ggrant@trebnet.net 416-443-8159

The Toronto Regional Real Estate Board is Canada’s largest real estate board with more than 62,000 residential and commercial professionals connecting people, property and communities.

www.trreb.ca/

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Source: Toronto Regional Real Estate Board


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