Greater Toronto Area GTA Housing Market remains hot in November 2021.

The GTA average home selling price (blue line) is up from October. And it sets a new all-time high record at $1.16 million. However, homes for sales (red line) and actual sales (green line) were down. In relation, this highlights the supply issue in the GTA.

The following is the market trend for November 2021. It shows home sales, average price and new listings across GTA. It is broken down by home types such as Detached or Condo Apartments. November 2020 figures are also listed for comparison.

GTA Market November 2021 for Toronto Detached Homes

It is on a similar trajectory for detached homes in the City of Toronto. With record-high average price at $1.8 million, and declining sales and new listings.

Reactions to sky-rocketing home prices

Governments at all levels must take coordinated action to increase supply.

The GTA remains the primary destination for new immigrants, and is at the centre of the Canadian economy.

…Short term band-aid policies to artificially suppress demand do not work.

TRREB President Kevin Crigger

$1.3 million for a starter home in Toronto. This is insanity,

ike Colle, a Toronto Councillor representing Ward 8, Eglinton–Lawrence. In an interview with CBC News. He plans to ask the Ontario government for a new tax to curb domestic sources of exuberance.

…the condo segment continues to tighten and experience an acceleration in price growth, particularly in suburban areas. This speaks to the broadening of economic recovery, with first-time buyers moving back into the market in a big way this year.

The condo and townhouse segments, with lower price points on average, will remain popular as population growth picks up over the next two years,

TRREB Chief Market Analyst Jason Mercer

The dream of home ownership has never been harder to achieve, and Ontarians are looking to their political leaders to make that dream a reality

Tim Hudak, CEO of the Ontario Real Estate Association (OREA) in a recent press release.

Current and proposed measures to curb speculation

Ontario currently imposes a 15% non-resident speculation tax since 2018. However, this applies to foreign corporations or individuals who are not citizens or permanent citizens of Canada. It was supposed to curb speculative purchases of properties located in the Greater Golden Horseshoe region.

However, there are local investors groups that buy properties in bulk. And these groups usually have foreign money invested. They consistently overbid properties at $50k to $250k over asking. By doing so, drives up market value. The properties are then flipped in short term for huge profits. As they are local investor groups, the 15% non-resident speculation tax does not apply.

We should tackle these speculations in 3 ways.

Firstly, more stringent Fintrac checks to verify the source of money for the home purchase. This is to make sure foreign money is not involved. Otherwise, apply the 15% speculation tax.

Secondly, stop the close bidding process. As close biddings drive prices up unnecessarily. Prime Minister Trudeau in his election campaign promised to make close bidding illegal. Instead, encourage open bidding as in an auction.

Thirdly, to levy a higher capital gain tax, for short-term flipping. As well as for non-principal residence.