Toronto home prices rose more than 20 per cent in November compared to the same period last year, as homebuyers faced a declining number of active listings, according to data released by the Toronto Real Estate Board on Friday.
"Home buying activity remained strong across all market segments in November. However, many would-be home buyers continued to be frustrated by the lack of listings, as annual sales growth once again outstripped growth in new listings," TREB President Larry Cerqua said in a statement.
It was a familiar set of circumstances in the month. The average selling price surged 22.7 per cent to $776,684 as active listings fell 35.8 per cent. Nonetheless, those two factors didn’t stymie committed buyers, as total sales in the Greater Toronto Area rose 16.5 per cent to 8,547 units.
That mix of factors prompted a warning from the regional real estate board.
"Recent policy initiatives seeking to address strong home price growth have focused on demand. Going forward, more emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types, especially in the low-rise market segments,” said Jason Mercer, TREB’s director of market analysis, in a statement.
The average price growth for all properties in November masked even more substantial gains for the most prized properties, as detached homes in Toronto fetched $1,345,962 on average – marking a 32.3 per cent uptick from the prior year.
The tight conditions in the housing market are also driving more buyers into less expensive alternatives, with condo sales rising 25.8 per cent across the GTA in November.
Read TREB's November report for the Toronto housing market: