Tue. May 17th, 2022

Properties in the Toronto area are in the middle of an affordable crisis that can only be solved through government cooperation, says TRREB

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Average house prices, inventories and transactions rose throughout Toronto and the GTA in September.

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Good for sellers, not so good for buyers.

The local real estate market has settled into a perpetually tight supply cycle that we have not seen for many years and forced many prospective home buyers to take a longer break or completely give up on finding a home.

The latest report from the Toronto Regional Real Estate Board (TRREB) highlights the fact that tight market conditions in the GTA housing market maintain strong price growth as we enter the fall season.

August saw 8,596 sales at a $ 1,070,911 average selling price, but an expected rebound in September increased sales to $ 9,046 and the average selling price to $ 1,136,280 – gains not seen since last spring.

Compared to last year, market conditions tightened significantly, as sales represented a significantly larger share of listings and a significantly lower number of new listings across the board.

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On the ground, we may not see as many insane bidding wars and bullying deals as the most overheated months earlier in the year, but sellers are still calling shots.

And many homebuyers, especially first-time people, are having a hard time getting a foot in the door.

The persistently low supply of housing stock in Toronto and the GTA is a major reason why house prices remain at such high levels – a scenario that is likely to last for the foreseeable future.

“Demand has been incredibly robust throughout September with many qualified buyers willing to buy a house tomorrow, provided they could find a suitable property,” said Kevin Crigger, TRREB president.

Crigger has now stated for several months that the real estate markets in Toronto and the GTA are in the midst of a housing crisis that can only be remedied if all three levels of government together look at long-term solutions together.

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“With new listings in September by a third compared to last year, it’s easier said than done to buy a home for many,” Crigger said.

“The lack of housing supply and options has reached a critical time. Band-aid policies to artificially suppress demand have not been effective. This is not a problem that can be solved by a level of government alone. There must be federal, provincial and local cooperation on a solution. ”

Easier said than done.

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Municipal fees and taxes form a significant part of new housing prices.

Bureaucracy sometimes associates new projects with for years, and developable land in and around GTA is in short supply.

Going up is always an option, but tight supply and rising prices continue to define Toronto’s condominium market.

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TRREB’s second quarter cooperative market report released in July showed that the average selling price of apartments rose by 10.8% year-over-year in the second quarter of 2021 to a high of $ 686,312.

This also represented more than a 6% increase over the previous three months.

In the city of Toronto, which accounted for close to 70% of apartment transactions in the second quarter, the average selling price was $ 721,109 — an increase of 9% over a year earlier.

“Inflation in September continued to be driven by the low-rise segments, including detached and detached houses and terraced houses,” said TRREB’s market analyst Jason Mercer.

“However, competition between buyers of apartment apartments has increased significantly over the last year, which has led to an acceleration in price growth over the last few months, when first-time buyers re-entered the owner market. Look for this trend to continue, ”Mercer said.

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Fast forward to 2022, and industry experts are eager to know how affordable housing will be treated next year when our provincial and local elections begin in the province.

“Housing was a key issue in last month’s federal election. Provincial and municipal elections in Ontario are on the horizon in 2022, ”said TRREB CEO John Di Michele.

“Much of the heavy lifting required to bring more housing online, from a political perspective, is happening at the provincial and local levels,” Di Michele said.

“These levels of government must be on the same page. This should be an important topic for debate during the forthcoming elections. ”

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One thing that home buyers can bring to the bank is that the market does not appear to be correcting anytime soon.

Patience, preparation and taking the time to save savings and research quarters will pay off for today’s buyers.

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