Summer 2021 Market Review
The Toronto real estate market almost always takes a breather in the summer time, as both buyers and sellers turn to other activities – like enjoying the outdoors and having fun! But, the market never stops. Here’s what happened over the last couple of months.
July – The volume of sales decreased from 11,033 in 2020 to 9,390 this year (-14.9%), but the number of new listings also decreased, from 18,119 to 12,551 (-30.7), which maintained the usual tight market conditions. Thus, the average sale price went from $943,594 in July 2020 to $1,062,256 this year, an increase of 12.6%.
Much of the price increase was driven by sales in the 905 region. For example, while the average sale price for a detached home in the 416 increased 5.7% year-over-year, in the 905 region that increase was 27.0%! Similar differences are notable in sales of semi-detached homes and townhouses.
Breaking out the condo segment, condo sales in the 416 increased by 4.2% (+ 17.2% in the 905), while the average sale price edged up 4.8% (+ 11.7% in the 905).
It would appear that a good portion of the increase in sale prices reported by the Toronto Regional Real Estate Board is being driven by activity in the suburbs.
August – Again, the volume of sales decreased from 10,738 in August 2020 to 8,596 this year (-19.9%), and the number of new listings decreased from 18,599 to 10,609 (-43%), maintaining those tight market conditions. Last month, the average sale price went from $951,219 in August 2020 to $1,070,911, an increase of 12.6%.
As seen in July, much of the price increase was driven by sales in the 905 region. Following the example above, the average sale price for a detached home in the 416 increased 11.2% year-over-year, while in the 905 region that increase was 25.6%.
Breaking out the condo segment in August, condo sales in the 416 increased by 13.2% (+7.5% in the 905), while the average sale price edged up 7.1% (+14.5% in the 905).
Again, it looks like a big part of the increase in sale prices is being driven by activity in the suburbs.
Overall, although sales volume decreased this summer after last summer, the continued lack of housing supply across the GTA continued to drive prices up. Now that we are into September, the typical ‘fall market’ is getting under way. Just this week, we’ve noted a spike in the number of listings on the Toronto MLS. Some of them are ‘renewed’ listings that didn’t sell in the last few weeks of August, but many of them are fresh on the market. We should expect new listings to increase over the next month or two, and the pace of sales to steam along! If you are looking to get into the market, now is a great time.
On another note, as many of you know, I’m starting to nurture real estate business in the Madawaska Valley. I spent a good part of the summer scouting out properties and talking to locals about what they see, and expect to see, in the market there. If you have any interest in that area, let me know! I can list and show properties on both the Toronto and Ottawa real estate boards.