Hot Toronto Market Continues in November

Prices continued to rise in November across all property types in the City of Toronto. This is unusual: with rare exceptions over the past 20 years or so, prices have fallen in November as the holiday season approaches.

Detached homes notched all-time high prices in each of the last three months, with an average price of $1,807,983 in November. The increase in prices corresponds to a decline in the inventory of homes for sale, down to just 0.82 months’ supply in November. This is the second month in a row that inventory has been less than one month. In effect, this means that houses are selling faster than they come on the market!

The same pattern is evident in condominium apartment sales in the City of Toronto. Prices increased to another all-time high of $745,941 in November, narrowly beating the previous high of $744,730 reached in September. The inventory of condos for sale fell sharply in November to 1.1 months’ supply from 1.5 months in October.

The relentless upward climb in prices of all property types in Toronto is being driven largely by low inventory. This is creating massive bidding wars. Generational lows in mortgage rates have also been pushing the market higher for some time. Now that the Bank of Canada is hinting at interest rate hikes beginning early next year, many buyers are focused on getting in before it’s too late. This extra layer of ‘FOMO’ could keep the market boiling right through the holiday season.