The relaxing of restrictions following the first wave of COVID-19 marked the start of a resurgence in the Greater Toronto Area housing market, which has brought month after month of record-breaking figures. While the region is once again in the midst of a second wave of the pandemic, a new report from the Toronto Regional Real Estate Board (TRREB) is showing that November once again broke real estate sales records. A total of 8,766 sales were reported across the GTA last month, representing a 24.3% year-over-year jump. A surprising share of the sales come from the single-family home market, with strong numbers in the City of Toronto, and an even larger share in the 905.
Development in Toronto, image by Forum contributor skycandy
“Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth,” reads a statement issued by Lisa Patel, TRREB President.
November saw a tightening of market conditions for many single-family market segments, contributing to double-digit year-over-year increases in selling prices for detached, semi-detached, and townhome segments. In the condominium market segment, new listings in November almost doubled year-over-year, which along with more choices for buyers is being attributed as one of the factors contributing to a decline in selling prices within the 416 submarket.
“The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, this may be somewhat of a short-term phenomenon. Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets,” reads a statement from Jason Mercer, TRREB Chief Market Analyst.
In November, the average selling price for all home types combined in the GTA increased 13.3% to $955,615, with current averages sitting at $979,224 in the 416 market, and $943,131 in the rest of the GTA.
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