The November 20i21 Toronto Real Estate numbers are in! It’s that time where we take a deep dive into what they mean for all segments of the market.
There are a lot of different interpretations of what the market is showing right now, but one thing all of us analysts can agree upon is that the Toronto real estate market in November continued to blaze.
Two major points to note in this month’s numbers:
- The average home price in the region stretched to $1,163,323, an almost 22 percent jump from $955,889 in November 2020.
- The figures show demand for all types of housing in the region is continuing to outpace supply, but the condo market, in particular, is tightening and prices are accelerating more rapidly in suburban areas.
Let’s look at the Toronto C1 area and what the numbers look like in each segment.
November 2021 Toronto Real Estate Numbers: Detached Homes
I usually begin with the Condo market analysis, but this month, I’m starting with the segment that has everyone scratching their heads.
The detached home market in Toronto continues to soar each month – bigger and bigger with numbers skyrocketing.
Last month I said I would keep an eye on this segment, and I’ve been watching the transactions throughout November – there are definitely some things to note. In November, detached home prices have jumped over 20% year over year and the number of days on the market continues to hold at only 15 days. This means inventory is at near-historic lows and accordingly, prices are continuing to rise.
During the month of November, there were only 286 transactions, down from 354 in October, yet pricing was up – way up – to $2,455,836. So, what does this actually mean?
Looking deeper into the numbers, the number of transactions in the luxury market is through the roof – luxury market, meaning transactions that are $5 Million+. This is what is driving the huge spike in average prices and the soaring year-over-year stats.
Homeowners are seeing major gains in their investments (real estate, stocks, etc) and are upgrading at a rapid pace. We’re seeing unheard-of bidding wars for homes selling in the $7 to $8 Million range and this is what is really driving these numbers.
November 2021 Toronto Real Estate Numbers: Semi-Detached & Row Homes
Once again, during the month of November, the semi-detached and row home market was one of the fastest-growing and appreciating segments in Toronto real estate.
Average prices jumped up nearly 7% from October and are currently sitting at $1,614,306.00. That number is up 23% from November 2020! Days on the market have gone up slightly to 15, which is pretty normal for this time of year.
The demand, low supply, and near-record low-interest rates combine to make the perfect storm to fuel this jump in prices.
I am hearing and seeing directly from clients their confidence in the economy rise and many want to lock in a great mortgage rate before the end of the year. There are many unknowns about what 2022 has to bring when it comes to the Bank of Canada and what they will do with interest rates – this is a big motivator for clients looking to make moves now and lock in a new home quickly.
November 2021 Toronto Real Estate Numbers: Toronto Condo Market
The Toronto condo market has the largest segment of sales and is also seeing massive price jumps. In October, we saw prices increase 8% year-over-year and now in November, we are up 17%!
But let’s take a closer look – if we examine pre-pandemic prices and where it sits now, we are looking at nearly flat numbers. The condo market took the biggest hit during the pandemic so it’s a little skewed – this is what I mean by looking deeper into the numbers and not just the flashy headlines.
But the jump in numbers does prove one major point – with low interest rates and new confidence in the economy, job security, returning to office work – all of this contributes to why buyers are back to buying condos in droves. These numbers in the condo segment are only going to continue to climb.
With near historic low inventory and the sudden surge in demand, I see prices continuing this trajectory for the next several months with no slowdown in sight. I had a first-hand example of this over the weekend when one of my condo listings sold for $150/sqft higher than the last comparable suite. Good timing, combined with the right listing strategy, staging, and marketing are getting sellers even more than they expected and, in a month where traditionally things tend to “slow down”. It’s time to rethink how we approach the December market, isn’t it?
One other item to note about the condo market is the number of high-priced transactions that are taking place. It isn’t the studio and 1-bedroom suites that are moving, it’s the large suites that fall into the $1.5 Million + range.
While the number of condo sales was up significantly the growth rate was the highest in the $2.5 Million range in November (+46.7%).
In November 2020, the number of transactions that fell into the $1.5 Million and up category for condos was 31. In November 2021 the number of transactions in the exact same category was 57.
What does this mean? Likely that many buyers are getting priced out of the semi-detached market and are looking at larger condos to live in that offer so many conveniences of downtown living, allowing them to live in the city longer and enjoy all it has to offer.
Toronto Pre-Construction Condos
Just a quick note about this segment of the market as it’s been a bit quiet lately. January is going to be filled with new project launches and buyers are literally counting down the days.
One of the biggest launches that my clients are buying at is XO2 Condos. And many of these buyers are looking at the bigger floor plans as those are going to have huge value in the future…remember what I just said about that $1.5 Million + segment? This is a major opportunity to pick up a large condo at pre-construction prices and watch that turn into one of the best investments you’ve ever made.
I’ve got lots of great info on the project on my website so here’s the link for you to check out and remember to register to be a part of my VIP Client list: XO2 Condos.
Looking for more insights or want to discuss any questions? Simply fill out our form below and I’ll be in touch right away.
~Romey Halabi, Lead Broker & Founder, Toronto Realty Boutique