Housing affordability in the Greater Toronto Area went from bad to worse in September as prices surged and supply plunged.
The average selling price of a home last month jumped 18.3 per cent year-over-year to an all-time high of $1,136,280, according to data released by the Toronto Regional Real Estate Board (TRREB) on Tuesday.
Meanwhile, home sales fell 18 per cent year-over-year as the market continued to tighten.
The number of active listings plunged by half in September, with just 9,191 homes up for sale at the end of the month; and new listings sank 34 per cent compared to a year earlier.
“The lack of housing supply and choice has reached a critical juncture,” said Kevin Crigger, president of TRREB, in a release.
“Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property. With new listings in September down by one third compared to last year, purchasing a home for many is easier said than done,” he said.
TRREB said while price growth was driven by the detached and townhouse segments, competition between buyers in the condo market has seen a meaningful increase – a trend the board expects will continue.
Toronto’s raging housing market presents a challenge for the newly re-elected federal Liberals, who campaigned on a promise to tackle affordability for first-time buyers.
“Band-Aid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution,” Crigger said.