November A Runaway Success For GTA Home Sellers

By: Dana Gain

November A Runaway Success For GTA Home Sellers

Tags: record breaking, break records, broke records, real estate report, real estate market report, real estate market, november 2021, november 2021 real estate, homes for sale, houses for sale, videos, real estate videos, realtor blog, real estate blog, top real estate blog,

Home sellers in the GTA had their best November on record, according to data released last week from the Toronto Regional Real Estate Board (2021). 

“Home sales reached a new record for the month of November and the average selling price also reached a new all-time high.” (TRREB, 2021).

Good news indeed for home sellers. But if you were on the other side of that equation - shopping for a home and being outbid time and again - you are not alone.
Housing Prices Continue to Climb
Coming into 2021, it was clear that home value had appreciated considerably relative to the prior year. 
The trend showed no signs of abating in November. If anything, market conditions tightened further. The month saw fewer homes on the market than the prior year and more buyers than ever lining up to purchase them.

The average selling price across all home styles in Halton region increased between 19% and 25% since year-to-date numbers were released in November of last year.
Specifically, Halton Hills average selling price grew from $903,622 in November 2020 to $1,135,752 at the end of last month. This was the single highest average price increase in all of Halton region with 25.7% growth.
Next was Milton with a 24.7% increase in average selling price. In November 2020, the average price of a home in Milton was $854,350. Last month, this number was $1,065,347.
Burlington has also demonstrated strong growth in the past 12 months. Last year at this time, the average price of a home in Burlington was $895,127. By the end of last month, this had become $1,078,093.

Demand in Oakville proved similarly strong, with an increase of 19.2% in average selling price year over year. This time last year, the average price of a home in Oakville was $1,241,641, while by the end of last month this number had grown to $1,479,483.
How do these figures compare with other areas of the GTA? In November 2020, the average price of a home across all municipalities was $955,615. This November, that number rose to $1,163,323, an increase of almost 22% year over year. Halton Hills and Milton were ahead of this curve at 25% and 24% respectively, while Burlington and Oakville were slightly behind it.

2021 Competitive Trend Intensifies
As competitive as the market has been this year, November numbers went even further.
There was a clear jump in sale price versus listing price during November across all cities of the GTA. While it’s not unusual to see such an increase, the degree of the shift was marked.

Halton region saw a 3% jump in consumer willingness to pay over asking price, from this year’s 105% average to 108% during the month of November. 
Competition in Milton grew the fastest in Halton during November, finishing with a sale price at 110% of asking price. Burlington and Halton Hills tied for second most competitive at 109%, and Oakville at 106%.
The average sale versus list price increase across all GTA municipalities in November was 108 per cent compared with 101% in November 2020, a rise of 7%.
What does all this mean? Competition is intensifying even now during the calmer months. It is perhaps most noticeable now because fewer homes are typically listed during the winter and the same number of buyers are competing for these homes.

While the numbers reported in November are indeed striking in terms of average selling price and what consumers are willing to pay over list, these indicators are symptoms of the larger market challenge: lack of overall housing supply.
For buyers shopping for a home in this environment, remember that help is out there.

The most diligent REALTORS® will conduct much of their research before you ever view a property. Market value will be assessed along with neighbourhood trends, speed of sale, average neighbourhood selling price, and any other unique factors that might be important to a seller.***

Toronto Regional Real Estate Board (2021). Market Watch, November 2021. GTA REALTORS® Release November Stats.
Toronto Regional Real Estate Board (2020). Market Watch, November 2020. GTA REALTORS® Release November Stats.

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