LACKIE: Housing market shows little indication of cooling anytime soon
Another month down, more of the same.
Or rather, more of the same elements continuing to drive an already challenging marketplace into the tightest market in decades, and one that shows little indication of cooling anytime soon.
October 2021 market data, released last week by Toronto Regional Real Estate Board, revealed last month to be the second-strongest October on record.
With an average sale price of $1,155,345, up nearly 20% from October of last year, only 11,740 new listings came to market, down 34.1% year-over-year.
Limited supply coupled with strong demand and nearly-free money; and here we are.
Here’s a perfect example: I am currently working with an upsizing young couple as they search for their family home in north Toronto. They have a great budget, bolstered by a super-strong result on the recent sale of their condo, and realistic expectations. And also, I assume, some family support. Pretty typical and a far cry from the worst case scenario these days.
After “browsing” since the summer to get their bearings in this wild marketplace, they are now ready to go and it’s almost impossible. The first house they were ready to make a move on sold on day one for $400,000 over list and $100,000 higher than a similar house around the corner that sold two weeks before. The next, a complete fixer-upper (and that’s being euphemistically kind) sold on offer night with eight other offers for a full $150,000 above a comparable house one street over that sold within days.