Last month the average sales price for all residential types of property was $1,189,542 in Toronto proper. This includes detached houses, semi-detached, attached/townhouse and condominiums. 

This is a massive jump over September 2020 averages of $960,613 and this can be in part explained by the rebound in condo prices as well as the continued feverish demand for low rise housing types. 

Actual sales were down 18% from the previous year comparison as well as a huge drop in available listings for sale. This number dropped almost 50%!! New listings were off by 34% so when you factor all three together, you can see how prices shot up so much year-over-year. We are in what’s called a tight housing market.

Once the borders opened in August to foreign students and temporary workers again, rental rates started to rise. When the rentals start moving investors jumped back in (although savvy investors bought months ahead of the rise) and condo prices started to increase again. In many parts of the downtown area rental rates on the smaller units are back in line with pre-covid. Now, with dirt cheap mortgage rates attached to them.

Housing prices and availability are complex things that can be affected by many factors which makes navigating the home buying and selling process that more difficult. 

With no end in sight on the supply side being drastically filled we would need to see a substantial increase in interest rates to reign in escalating increases. Be careful and comfortable with the level of debt you take on, and this purely is an individual choice. I do think today’s buyers have to think differently in their approach to buying though, especially for those looking at houses.