Available listings went down by an average of 21% across the GTA while sales remained the same as they were in September. Offer dates with multiple offers are the norm and there is strong upward pressure on prices for every property type across the GTA. The suburbs continue to have the strongest price increases with the lack of affordability in Toronto has pushed many people to the suburbs as many people sought to get more space for a smaller price tag. Below is the market report for October 2021.
Rising interest rates
October has been yet another month of price growth in the GTA. We are now reaching almost double digit price increases month to month. The Bank of Canada announced at the end of October that it will hold its target for the overnight rate at the effective lower bound of 0.25 percent. However, with recent talk of rising interest rates, it may create further spurt of buying in GTA’s real estate market as buyers rush to get into the market prior to the rate hikes. This likely rise in interest rates in the coming months is expected to be fairly modest and it shouldn’t spook too many buyers in the short term.
What is an absorption rate or months of inventory?
The absorption rate or months of inventory (M.O.I. for short) is deemed as the most accurate way to pinpoint whether a market is in favour of sellers or buyers. Found by comparing home sales versus how many listings are currently on the market, M.O.I. essentially asks the question: How long would it take for every single property to sell if no new homes were put up for sale?
LOW-RISE (detached, semi, & townhomes)
As indicated by the months of inventory report or MOI, the October report shows that low-rise properties have been in extreme demand with even lower supply than in previous months. Price increases for this segment are sharp, as high as over 10% month over month. Multiple offers and record breaking prices are the norm for these types of properties.
Detached homes in the GTA have had very strong upward pressure on prices in October. The strongest seller’s markets are in the suburbs. Namely, Durham region (0.5 M.O.I.), Peel region (0.6 M.O.I.) & Halton region (0.7 M.O.I.). followed by Toronto (0.9 M.O.I.) & York region (0.9 M.O.I.).
Semi-detached homes, freehold townhouses and condo townhouses are, as they have been, just scorching since the spring. Absorption rates for this segment range from 0.2 M.O.I. to 0.3 M.O.I. in Durham, Peel, Halton and York regions while Toronto is a slightly cooler ranging in the 0.6 M.O.I. to 0.7 M.O.I. range.
HIGH-RISE (condo apartments)
The condo market has remained in a moderate to strong seller’s market in the month of October. Peel region (0.7 M.O.I.), Halton region (0.8 M.O.I.), York region (0.8 M.O.I.), and Durham region (0.8 M.O.I.) are experiencing the sharpest upward pressure in prices. Condos in Toronto (1.4 M.O.I.) are experiencing a slightly cooler market than the suburbs but there is still plenty of competition and multiple offers are common.
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