Homebuyers beware, it’s slim pickings out there. There is a major shortage of homes for sale in Toronto right now and in fact, there are fewer active listings right now than there have been in the last 25 years.
Strata.ca realtor Ben Lavrysen told Curiocity that, “based on August periods going back to 1996, this is the first time we have less than 10,000 active listings on the MLS.” Lavrysen said that the entire GTA is facing a housing supply issue, which is driving up prices even more.
“Supply is simply not keeping pace with demand and this will only get worse as immigration resumes,” he said.
“The trend to move into larger homes with space for home offices and schools for children, as well as coveted outdoor space, that was experienced during the pandemic has made its way into the townhouse category.”
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As a result of so few detached homes on the market, buyers are turning to semi-detached homes and townhouses as the next best thing. A report published by Strata on Wednesday says that the average price of a townhome in the GTA is now $730,000.
According to Lavrysen, we can expect to see competition increase even further as homebuyers battle it out for semi-detached listings. Strata’s report says townhouses in cities like Oshawa and Bowmanville are some of the most in-demand right now, making them the hardest to buy.
This is also the case for condos, where units in Oshawa, Burlington, Hamilton, and Whitby are appreciating in value more than any others in Toronto.
“Homebuyers are increasingly looking outside city limits for affordability, and the data is finally starting to reflect that trend,” said Strata’s Broker of Record, Robert Van Rhijn.
In short, it seems that the house supply shortage is here to stay for the time being in the GTA and townhouses seem to be the hot new commodity for homebuyers to fight over.