Greater Toronto Area (GTA) home sales remained brisk throughout the month of November, with the latest data from the Toronto Regional Real Estate Board (TRREB) showing that home sales increased 24% year-over-year (y-o-y) across the Toronto Region. New listings grew 33% y-o-y, with 11,545 new homes added to the market in November, and the average home price jumped 13% annually to $955,615.
Buyers continued to take advantage of a low interest rate environment, noted TRREB President, Lisa Patel, with a growing number of buyers seeking out “some form of single-family home.” As the trend of buyers seeking more square footage and green space continued, competition conditions tightened in what TRREB describes as “ground-oriented” market segments across the region in November.
Competition for Detached Homes Remained Fierce Across the Toronto Region
The average sold price for detached properties grew 15% y-o-y in November to $1,202,281. Detached home sales grew 29% y-o-y across the Toronto Region this November, with 4,222 homes changing hands, while new listings grew a mere 8%. As such, competition for detached properties was fierce across the region, particularly in markets outside the City of Toronto, although competition levels remained “robust” in Toronto as well, as described by Patel.
In Durham Region, annual new listings growth for detached properties stayed completely flat, whereas sales grew 33%. As such, the sales-to-new-listings ratio (SNLR), which is a measure of housing competition was a staggering 104%, meaning market conditions very strongly favoured sellers in the region. A sellers’ market exists when the SNLR is over 60%. In Durham, the SNLR over 100% indicates that since there were a very low number of new listings added to the market in the face of strong buyer demand, buyers began to pick up older inventory that was listed prior to November. This trend continued across regional markets in Durham, where the SNLR tipped over the 100% mark in markets like Ajax (102%), Brock (130%), Oshawa (110%), and Whitby (106%).
Similarly, in Halton Region, there was an 8% dip in new listings for detached properties, whereas sales grew 20% annually. The SNLR for Halton Region was 98%, and buyers this November faced even steeper competition than detached home buyers in Halton Region last year, when the SNLR was 75%. In some regional markets like Halton Hills, there was steep competition for detached homes with an SNLR of 106%.
In Peel Region, detached house sales grew 41% annually, while new listings only jumped 11% y-o-y. As such, Peel Region as a whole was in steep sellers’ market territory for detached properties with an SNLR of 99%. Peel Region housing markets like Mississauga (SNLR of 100%), Brampton (SNLR of 98%) and Caledon (SNLR of 104%) followed suit. The average home price for detached properties in Peel Region grew 18% y-o-y $1,128,689.
In the City of Toronto, the average home price for detached properties grew 9% since last November to $1,477,226. Detached home sales increased 18%, while new listings rose by 16%. As such, competition conditions in the City of Toronto remained similar to last year, and in favour of sellers, with an SNLR of 77% in November 2020, versus 75% in November last year.
Competition for detached properties followed a similar trajectory in York Region: the SNLR for detached properties was 87%, with sales rising 39% y-o-y, and new listings increasing 12%. The average detached home price in York Region was $1,317,032 in November.
The Average Condo Apartment Price Dips 2% Across Toronto Region; Competition Conditions in Stark Contrast to 2019 in Key Markets Such As The City of Toronto
Across the Toronto Region as a whole, condo apartment sales grew a modest 7%, while new listings grew a staggering 81%, plunging the market squarely into balanced market territory with an SNLR of 50%. A balanced market is defined by an SNLR between 40%-60%. In reflection of competition conditions, the average price for condo apartments across the region noted a small price decline of 2% y-o-y to $605,863.
According to Jason Mercer, TRREB Chief Market Analyst, the “condominium apartment market is certainly more balanced than in previous years, with some buyers benefiting 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.”
In condo-dense markets like the City of Toronto, the average sold price for condo apartments declined 3% y-o-y in November to $640,208. Condo apartment sales rose a mere 1%, while new listings grew a staggering 81%. With an SNLR of 47%, competition conditions were in balanced market territory. This is however, in stark contrast to market conditions in November 2019, when the condo apartment market was in deep sellers’ market territory with an SNLR of 84%.
Check out the infographics below to see how sales and average prices changed by home type for TRREB and the City of Toronto in October.
Note: Comments and stats highlighting the Toronto Region as a whole are a reference to the areas covered by TRREB, which include: Durham Region, Halton Region, Peel Region, York Region, Toronto, Dufferin County and Simcoe County.
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