Cliff Stevenson, Chair of CREA stated that on viewing how many homes were bought and sold in March 2021, one could be forgiven for thinking the market just continues to strengthen, and maybe to some extent it is. Home prices in Toronto climbed to a record as a steep decline in the number of properties that came up for sale added fuel to the competition among buyers, leaving little prospect in the market to cool. Average home price in the Greater Toronto Area has increased rapidly by more than 450 per cent since 1996, raising fears as the population continues to grow and land becomes scarcer.
A report states that across the GTA benchmark home prices are up to 17.3 per cent year over year to $1,059,300ss. The driving factor behind the price increase is a lack of homes in the market There was no reassurance for Greater Toronto Area homebuyers last month as the average home price crept up nearly 28 per cent in comparison to last year as a lack of supply continued to hamper the market. The Toronto Regional Real Estate board revealed that the average selling price for a home in the region exceeded $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year. In a press meet, Kevin Crigger stated that the governments at all levels must take coordinated action to increase supply in the immediate term. He also added that until the governments work together to cut red tape, smoothen the approval processes, and encourage mid-density housing, ongoing housing affordability challenges will keep on escalating.
In an approximation, the price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000. The Ontario board narrated that it sensed signs in February that the region is making adequate moves toward a more balanced market. On average about 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year. In a press release, Jason Mercer who is the board's chief market analyst stated that just because the inventory remains exceptionally low, it will take some time for the pace of price growth to slow down.
