According to figures released late last week by CREA, the average home price in Toronto reached $481,305 in November. That’s a new record average and it’s got the housing market back into sellers’ territory.
The Canadian Real Estate Association also noted that the November figure is 2.1 per cent higher than October’s average and, when seasonal fluctuations are taken into account, almost 10 per cent higher than the average GTA home a year ago.
The other big news is that November sales across the country were 7 per cent above the 10 year average for the month. This makes November 2011 the fourth busiest month in terms of sales on record. What makes this stat even more significant is the month is usually a slow time for sales.
So are we in bubble territory yet? Here’s what CREA’s chief economist, Gregory Klump, had to say about the matter:
“With interest rates expected to remain low for longer, the housing sector will no doubt be closely watched for signs of excess. That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability.”