The torrid pace of volume and price growth in the GTA continued in November with another round of double-digit increases on both counts. November witnessed a total of 8,547 resale transactions through the Toronto Real Estate Board’s MLS System, up by a whopping 16.5% versus the 7,337 units sold in November 2015.
The condo apartment segment led all key market segments in November with an eye-popping 25.8% annual growth rate. Townhomes (+15.2%) and detached homes (+13.4%) also recorded strong double-digit volume increases, while semi-detached homes lagged somewhat with a 6.3% growth rate. With one month still remaining in 2016, year-to-date sales over 108,000 units have already smashed the previous calendar year record of 101,212 units which was set last year. Despite this record-setting performance, volume has been constrained throughout the year by perpetually weak inventory which is still showing no signs of abating.
On the price front, November witnessed another massive increase with 20.3% rise in the MLS Home Price Index (HPI) Composite Benchmark Price versus last year. The average selling price in November was $776,684 – up by an even more staggering 22.7% versus the $632,774 average price in November 2015. All key housing types recorded double-digit price advances, as per the following:
Detached Homes (+27.6%)
Semi Detached Homes (+19.8%)
Townhomes (+23.7%)
Condo Apartments (+15.1%)
As alluded to above, resale inventory of homes remains woefully weak (8.639 active listings as of November month-end, down by an incredible 35.8% versus last year’s total of 13,454 active listings). Unless the supply situation is rectified in a meaningful way, prices will remain at their current frothy levels despite the government’s recent attempts to further dampen demand by tightening mortgage qualification rules for high-ratio buyers.