Real estate in the Toronto area is in the midst of an affordability crisis that can only be fixed through government cooperation, says TRREB

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Median home sales prices, listings and transactions increased in Toronto and the GTA in September.

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Good for sellers, not so good for buyers.

The local real estate market has settled into a tight, perpetual supply cycle, the likes of which we haven’t seen in years and forcing many potential buyers to take a long break or give up finding a home entirely.

The latest report from the Toronto Regional Real Estate Board (TRREB) highlights the fact that tight market conditions in the GTA housing market are sustaining strong price growth as we approach the rental season. autumn.

August saw 8,596 sales with a median sales price of $ 1,070,911, but an anticipated rebound in September saw sales rise to 9,046 and the median sales price to $ 1,136,280, gains not seen since last spring.

Compared to last year, market conditions tightened noticeably, with sales accounting for a substantially higher proportion of listings and significantly fewer new listings across the board.

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On the ground, we may not see as many frenzied bidding wars and intimidation deals as the most heated months earlier this year, but sellers are still making the decisions.

And many homebuyers, especially beginners, find it difficult to get a foot in the door.

The sustained low supply of home inventory in Toronto and the GTA is a key reason why home prices remain at such high levels, a scenario that is likely to endure for the foreseeable future.

“Demand has been incredibly strong throughout September with many qualified buyers buying a home tomorrow as long as they can find a suitable property,” said Kevin Crigger, president of TRREB.

Crigger has stated for months that the Toronto and GTA real estate markets are in the midst of a housing affordability crisis that can only be remedied if all three levels of government collectively look at long-term solutions.

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“With new listings in September down a third from last year, buying a home for many is easier said than done,” Crigger said.

“The lack of supply and choice of housing has reached a critical juncture. Band-Aid policies to artificially suppress demand have not been effective. This is not a problem that can be solved by a single level of government. There must be collaboration at the federal, provincial and local levels to find a solution. “

Easier said than done.

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City fees and charges make up a large part of new home prices.

Red tape hampers new projects sometimes for years and developable land in and around the GTA is scarce.

Moving up is always an option, but supply shortages and rising prices continue to define the Toronto condo market.

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TRREB’s second quarter condo market report released in July showed that the median sales price of condo apartments increased 10.8% year-over-year in the second quarter of 2021, to a hefty $ 686,312.

This also represented an increase of more than 6% compared to the previous three months.

In the city of Toronto, which accounted for about 70% of second-quarter condo transactions, the median sales price was $ 721,109, an increase of 9% compared to the prior year.

“Price growth in September continued to be driven by the low-rise segments, including single-family and townhomes and townhomes,” said Jason Mercer, TRREB’s chief market analyst.

“However, competition among condo apartment buyers has increased markedly over the past year, leading to an acceleration in price growth in recent months as first-time buyers re-entered. to the property market. Look for this trend to continue, ”said Mercer.

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Fast forward to 2022 and industry experts are eager to learn how housing affordability will be addressed next year when our provincial and municipal elections begin in the province.

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“Housing was a key issue in the federal elections last month. Ontario provincial and municipal elections are on the horizon in 2022, ”said TRREB Executive Director John Di Michele.

“Much of the heavy lifting that is required to bring more housing online, from a political perspective, happens at the provincial and local level,” Di Michele said.

“These levels of government must be on the same page. This should be an important topic of debate during the next elections ”.

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One thing home buyers can take to the bank is that the market doesn’t seem ready to correct course anytime soon.

Patience, preparation, and taking the time to increase savings and research target neighborhoods will pay off for today’s buyers.

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Reference-torontosun.com

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