GTA housing market tightens in August
September 7, 2021
August housing sales in the Greater Toronto Area (GTA) slumped nearly 20 per cent compared to a year earlier and were down 8 per cent from a month earlier, but prices are rising as inventory plunges, reports the Toronto Regional Real Estate Board (TRREB).
New listings in the GTA fell to 10,609—down 43 per cent from August 2020 and 15 per cent from the 12,551 listings in July 2021.
The result has been tighter market conditions and sustained competition between buyers, leading to double-digit annual increases in selling prices. Even with slower transactions, August 2021 was the third-highest for sales of any August in the region, TRREB noted.
“The fact that new listings were at the lowest level for the past decade is alarming. It is clear that the supply of homes is not keeping pace with demand, and this situation will become worse once immigration into Canada resumes,” said TRREB President Kevin Crigger.
The average selling price for all GTA homes combined in August was up by 12.6 per cent year-over-year to $1,070,911—second only to Greater Vancouver as the most expensive region for homes in Canada.
“As we move toward 2022, expect market conditions to become tighter as population growth in the GTA starts to trend back to pre-COVID levels,” said TRREB chief market analyst Jason Mercer. “With a federal election just weeks away, we are calling on all political parties to continue focusing on housing policies that address supply and affordability across the country.”