The average selling price for all home types (this includes condominiums) was $1,163,323. At first glance, the average is only up $12,000 from October 2021’s average, and seems reasonable. Since August 2021 average prices have increased closer to $93,000 and that’s only in four months time! 

The increase also comes at a time in the calendar year where historically, price growth levels off until the upcoming spring market. This is a big problem, and one we all need to be concerned with. Straight up, our government is failing us and what the eventual repercussions will be, is still left to be determined. 

When it comes to housing affordability we all need to be bi-partisan and set aside the mentality where the government in power goes unaccountable because of our own fear based thinking tied to past experiences or weak political competition. 

For regular readers of my newsletter you will note that I have been a bear in waiting for awhile on the housing side. Not because I don’t believe in Toronto (and the GTA) real estate. But because I believe that housing is the foundation for healthy families, vibrant communities and desirable cities and neighbourhoods to live, work and play.

Lack of affordability in housing is like carbon monoxide to the lungs. A silent killer. Make no mistake, there are huge gains to be had in escalating house prices for some. The some are mostly government though. 
They benefits are huge and the cost is bore by the many. 

I have the privilege of working with a diverse range of clients across the income spectre. And I’ve always felt that it’s helped me immensely in keeping a close watch on the pulse of the housing market.

One common theme of late that has become a popular topic of conversation, is one in which many of my soon to be retiring friends and clients, are contemplating where they will retire too when work life is over? Guess what? I would say 3/4’s of them are not thinking of anywhere in Canada. And most of these people would be considered in the top 5% of income earners.

Granted, this is a very small sampling, and the reasoning is way to complex to tackle here, but I find it extremely interesting. I’m curious if you have experienced the same amongst people you know retiring in the next 5-10 years? I don’t suspect there will be a massive fleeing away from Canada, after all, it’s one of the best countries in the world to live. But I wouldn’t be surprised if many spend the bulk of their allotted yearly time away, from the high costs of living in this highly desirable city we all call home. 

I’ll leave with a note in part published by the Toronto Regional Real Estate Board to it’s membership in our monthly statistical update. I find it the most direct-to-the-point comment in a very long time.

“Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future. The GTA remains the primary destination for new immigrants, and is at the centre of the Canadian economy. For far too long governments have focused on short term bandaid policies to artificially suppress demand. Current market activity highlights decisively that these policies do not work, and unless governments work together to cut red tape, streamline the approval processes, and incentivize mid-density housing ongoing housing affordability challenges will escalate.”