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November 2021 was quite the month for the Greater Toronto Area (GTA), with both home sales and the average selling price of homes breaking records for the month.
According to the MLS® System from the Toronto Regional Real Estate Board (TRREB), there were 9,017 home sales in November 2021 — that’s a 3.3% increase from November 2020. As for the average selling price, it was $1,163,323 when taken across all home types.
The MLS® Home Price Index composite benchmark, an advanced measure of trends in home pieces, was also up. It rose 28.3% compared to November 2020 — quite the stark increase.
Meanwhile, the number of new listings decreased 13.2% compared to this time last year.
The low supply of homes in the region no doubt contributed to the higher average selling prices observed.
This trend holds across all home types, but condominium apartments and low-rise homes experienced the most significant supply decreases.
Although many trends reflect all types of properties, condominiums have seen particularly strong price growth, above all in suburban areas. One explanation may be that first-time buyers are entering the market again as the economy and country recover from the pandemic, making homeownership more viable.
Since this group of buyers tends to favor lower-price properties like townhouses and condominium apartments, it partly explains the increased demand.
We can expect this trend to continue for the next two years as more first-time buyers enter the market and the recovery continues.