Out of control Greater Toronto Area home prices just broke yet another record

If you're looking to buy a home in the Greater Toronto Area, too bad.

It's only getting more expensive to buy into one of the world's most competitive and risky housing markets, according to the latest report from BILD and Altus Group covering new home sales and prices in the region in September.

The GTA recorded over 3,500 new home sales in September, which is 16 per cent higher than the 10-year average. Over 1,000 of these sales were for single-family homes (including semi-detached and townhome units), though this actually marks a slight 3 per cent dip in the 10-year-average.

At 3,561 units sold, September new home sales in the GTA were 16 per cent above the 10-year average. See our latest new home market data release with @AltusGroup: https://t.co/LsnxQofbkl pic.twitter.com/JjxyAJJxxa

— BILD (@bildgta) November 2, 2021

Such strong sales and limited inventory of new homes fuelled rising prices in September, driving the benchmark price for new single-family homes to a record high of $1,573,764, the figure leaping by an impressive 33.5 per cent in just the last year.

Mirroring the trend of buyers flocking to single-family homes, prices for new condominium apartments actually eased slightly in September versus August.

The benchmark price for new condos, now at $1,036,831, is only a 2 per cent increase over last year compared to double-digit price growth for houses.

Though still an upward trajectory, experts are pinning this imbalance in price appreciation to the comparatively high volume of new condos in the pipeline.

"While available inventory is relatively low for both new single-family homes and new condominium apartments, the current supply dynamics are different for each sector," said Edward Jegg, Analytics Team Leader at Altus Analytics, Altus Group.

"There is very little new single-family product making it to the market, which is driving prices to new records. In contrast, there are significant levels of new condominium apartment product being launched, but strong demand means it is being bought up relatively quickly," said Jegg.

Condo units accounted for just shy of 2,500 sales in September, a pretty substantial spike of 27 per cent over the 10-year average, and the third-strongest September in 21 years of records.

It's been stressed by BILD throughout the region-wide building boom that price appreciation in the region essentially boils down to a case of supply and demand.

And while supply was very much an issue with single-family homes, several new condo projects opened in September, driving up inventory and contributing to a plateau in condo prices.

"At a time when new housing supply is being rapidly absorbed by the market, it is more important than ever for municipalities across the GTA to remove every roadblock to bringing more housing online," said Dave Wilkes, BILD President & CEO.

"Whether municipalities are considering affordable housing initiatives or implementing Growth Plan commitments that define where new growth will occur, they must retain a laser focus on bringing supply to the market as quickly as possible, as the region prepares to welcome four million more residents by 2051."