January-February 2021 Market Review

January was a busy month for real estate in Toronto. Here’s what the Toronto Regional Real Estate Board (TRREB) had to say in their monthly summary:

“• January 2021 home sales amounted to 6,928 – up by more than 50 per cent compared to January 2020. This strong start to 2021 included sales growth across all major segments including condominium apartments, both in the City of Toronto and surrounding GTA regions.

• New listings were also up on a year-over-year basis in January, but not by the same annual rate as sales. This means market conditions tightened compared to January 2020, resulting in the continuation of double-digit growth in the MLS® Home Price Index and the average selling price.

• The average selling price for January 2021 was up by 15.5 per cent to $967,885 year-over-year. The MLS® HPI Composite Benchmark was up by 11.9 per cent over the same period.

• Price growth was driven by the low-rise market segments, while the average condo apartment price was down in Toronto. However, if we continue to see condo sales growth outstrip condo listings growth, we could start to see renewed growth in condo prices later this year.”

February was much of the same. Sales volume hit 10,970, up 52.5% over February, 2020. New listings also surged 42.6% to 15,137. But, with more buyers out there than sellers, the competition drove up the average sale price by 14.9%, to $1,045,488.

For comparison, some of the numbers last February were very similar: sales went up 45.6% over February 2019; listings were up just 7.9%; and the average price was up 16.7% year-over-year. So, what we are seeing is not unusual.

Of note, the condo segment in the 416 saw sales increase by 63.2% year-over-year, but the average sale price dipped by 6.4% last month. (For comparison, sales in February 2020 went up 26.2%, and the average sale price went up 18%.) Considering that condo sales were up 85.5% in January of this year, when the average sale price dipped 8%, it looks to me like the surge in supply that we saw at the end of 2020 is being mopped up, and if that continues we’ll probably see condo prices firm up in the next few months (as noted by TRREB, above).

What this all boils down to is that it’s a great time to sell a house in Toronto, and a good time to consider buying a condo (either to occupy or as an investment).

Also, the ‘spring market’ is just around the corner, so as things warm up, we’ll see more listings hit the market. The question is, will there be enough of them?!