Rising home prices in Milton, Burlington, Oakville spur call for government action on housing
Published November 11, 2021 at 1:30 pm
High demand for housing across the GTA is spurring real estate professionals to call for government action.
According to the Toronto Regional Real Estate Board (TRREB), home sales in the GTA 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 and market conditions tightened across all major home types compared to last year. The annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.
For residents of Milton, Oakville, Burlington and Halton Hills, the TRREB Home Price Index is up 31.76 per cent, year-over-year. A detached house is up 33.7 per cent and townhouses are up 25.12 per cent.
“The only sustainable way to address housing affordability in the GTA is to deal with the persistent mismatch between demand and supply,” said TRREB president Kevin Crigger.
“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.”
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. The MLS Home Price Index Composite Benchmark was up 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,” said TRREB chief market analyst Jason Mercer.
“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.”
TRREB CEO John DiMichele said housing needs to be a major campaign issue during next year’s provincial and municipal elections.
“Provincial and municipal candidates in the 2022 Ontario elections need to put housing at the forefront of their campaign platforms,” he said.
“Both the ownership and rental markets have recovered from the relatively short-term effects of the pandemic, but competition for ownership and rental properties is once again tight. Ontarians need to be clear on what would-be policymakers will do to alleviate supply shortages and related affordability challenges.”insauga's Editorial Standards and Policies