Detached houses drive rise in market

GTA home sales jumped 24.3% annually, with 8,766 transactions last month

Single-family homes, particularly in the 905 areas around Toronto, continued to drive the housing market in November, injecting competition into even the most affordable parts of the region.

In Durham Region, traditionally among the most affordable parts of the Greater Toronto Area, the average price of a single-family home was up 20 per cent compared with the same month last year, the Toronto Regional Real Estate Board (TRREB) said on Thursday.

Detached house prices, which rose 15.2 per cent to an average of $1.2 million in the GTA, saw a 19.2 per cent gain in the 905 communities surrounding the city and an 8.7 per cent increase in the city of Toronto to an average of $1.48 million.

Sales of detached houses jumped 30 per cent across the GTA: 33.6 per cent in the 905 areas and19.3 per cent in the city.

Across the GTA, the aggregate average selling price — for detached, semi-detached, town homes and condos — climbed 13.3 per cent year over year to $955,615 last month, a $110,000 annual increase.

Home sales jumped 24.3 per cent annually across the region with 8,766 transactions last month. As lockdown-weary consumers went searching for space, the real estate board noted that low interest rates likely helped make single-family homes more affordable.

“Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth,” said TRREB president Lisa Patel.

On the flip side, condo sales lagged, showing only a 7.1 per cent annual increase, most of it in the 905 where sales increased 23.3 per cent, compared to a 0.8 per cent gain in the city of Toronto.

The 905 condo market also outperformed Toronto’s in price, rising 4.8 per cent to an average $533,984, compared to a three per cent drop in the city to $640,208. Real estate experts say that decline is steeper in the city core.

For the second consecutive month, the number of new condo listings was about double last year’s levels.

But the situation is likely temporary, said the real estate board’s chief market analyst, Jason Mercer.

“Once we move into the postCOVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets,” he said in a news release.