After prices leveled off over the summer, it seems that a whole whack of buyers came back into the GTA market with "guns blazing"! The average home price in the GTA jumped by 6% from last month which is simply staggering. That would be a healthy amount for an entire year; it's absurd for one month. Time will tell if this is an outlier or the start of a trend.
Sales were down 18% from last year at this time mostly due to lack of property hitting the market.
In Toronto, demand for housing remained strong as the number of active listings was significantly less than the number of willing buyers. Make sure you're seated when reading this next section because it gets kinda gnarly. Remember, these figures are for one month, not the entire year.
Dwelling | Aug. '21 Price | Sept. '21 Price | % Difference |
|---|---|---|---|
Toronto Detached | $1,778,928 | $1,674,641 | 6.2% |
Toronto Semi-Detached | $1,304,504 | $1,214,624 | 7.4% |
Toronto Condo Apartment | $744,730 | $720,832 | 3.3% |
In Durham Region real estate the picture is much the same. In September, average prices for all home types in Durham were up 7.2% ($50,000) for an average price of $968,136. Of note, condo prices in Durham region jumped by nearly 9% last month leading the way for all property types and regions in the GTA.
Here are the September 2021 stats for Durham Region:
Dwelling | Aug. '21 Price | Sept. '21 Price | % Difference |
|---|---|---|---|
Durham Detached | $1,030,076 | $1,086,681 | 5.5% |
Durham Semi-Detached | $782,521 | $779,048 | -0.4% |
Durham Condo Apartment | $500,197 | $544,709 | 8.9% |
For Homeowners
For Homeowners
There is no nice way to put this if you're a prospective home buyer. Prices continue to grow much faster than inflation and exponentially faster than wages and salaries. If you're thinking this is a bubble and you're waiting for it to burst, think again.
By 2024, you can expect nearly 500,000 more new Canadians (via immigration) who need a place to live. This will only create more demand and more upward pressure on prices. Factor in that nothing is being done to prevent foreign entities from using the Canadian Real Estate market as a safe-haven and things look pretty bleak.
My advice for you is to acquire assets now. We are in an inflationary period now where the relative value of the dollar is going down. By owning assets like real estate, precious metals or any other asset that appreciates you can ride the inflationary wave upwards and hopefully come out the other side.
Just think, if you owned a house in the GTA then you just made 6% on your home by doing nothing. Did you make 6% more money at work?