Last month we saw a shift from the first to the second half of the month. The 2nd half of October brought colder weather to Toronto, while the first half we were still able to get away with shorts and tee shirts, it continued with the trend of less sales and prices being flat from last month but high from October 2020 which was still adjusting to COVID prices. Looking at the sales number of October 2019 (back when most of us had never heard of COVID or Coronavirus) we can see $852,000 average sale price (a 5.5% increase from 2018). October 2020 saw a 13.8% increase from 2019 and this past month saw a 19.3% increase from 2020. Obviously, the old adage of listing and selling before Thanksgiving is no longer a rule. A large drop in listings of 34.1% has also contributed to this high demand and thus higher prices.

As I have said in the past, government policies to slow down prices by creating more taxes are short sighted methods of the simple minded. Instead, governments should be looking at ways to increase supply and thus lowering demand by creating more homes in the GTA. One of many ways is by helping builders build more residences whether they be Condominiums or Freestanding homes.

As I said last month, I feel that a normalization will continue, and we will see prices for the winter of 2022 go back to a “normal”. But a new normal it will be if demand remains high.