The Toronto real estate market has been on a tear in 2021. With the Canadian economy rebounding from the global health crisis, the Toronto housing sector continues to witness dramatic price growth month after month.

Despite the so-called exodus that started to make headline sin 2020, it seems people are returning to Toronto, stimulating tremendous demand for housing, whether it is a detached property or a condominium unit. But while demand is soaring, supply has failed to keep pace.

Supply of Toronto real estate has declined to concerning levels. Recent housing starts data, courtesy of Canada Mortgage and Housing Corporation (CMHC), has led to growing concerns that the affordability crisis impacting North America’s fourth-largest city will only escalate. But how low have inventory levels fallen? Let’s take a look at the numbers.

According to the Toronto Regional Real Estate Board (TRREB), the inventory of homes could not satisfy the level of demand seen in October. Residential sales enjoyed their second-highest level on record for the month of October, despite tumbling 6.9 per cent from the same time a year ago, with a total of 9,783 units.

The buying frenzy may have subsided slightly from last year, but average selling price for a residential property in Toronto swelled 19.3 per cent to $1,155,345.

TRREB figures show that new listings fell by 34.1 per cent to 11,740, while active residential listings declined 55.2 per cent to 7,750. In addition, new housing construction slowed in October from last year, as housing starts dropped 11.89 per cent year-over-year to 2,644. Year-to-date, housing starts were relatively unchanged, with 33,553 units, CMHC recently revealed.

By the end of the third quarter, the months of inventory across all property types fell to their lowest levels on record for the July-to-September period.

Continue to read on BLOG.REMAX