Housing prices up from Uxbridge to Ajax but inventory down

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Published November 4, 2021 at 10:35 am

Home sales in the Greater Toronto Area reached the second-highest level on record for the month of October with Durham Region leading the way, recording a GTA-leading 36 per cent hike in housing prices.

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 the GTA 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,” said TRREB President Kevin Crigger. “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.”

GTA realtors reported 9,783 sales through TRREB’s MLS system in October 2021 – down by 6.9 per cent 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.

Sale prices were up across all home types, though, with Durham showing GTA-leading increases in all categories. Durham still trails the rest of the GTA in average selling prices at $988,354, the only region in the GTA under $1 million.

Uxbridge ($1,450760) and Ajax ($1,055,455) are the only two communities in Durham with at least $1 million in average selling prices.

The Home Price Index Composite Benchmark was up in the GTA by 24.2 per cent year-over-year. The average selling price for all homes combined rose by 19.3 per cent 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 the GTA 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 the GTA 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,” said TRREB Chief Market Analyst Jason Mercer.

Photo courtesy of ZOLO

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