March 3, 2021 | Buying
We witnessed another record-breaking month this February as Buyers remained confident in their employment situations and took advantage of ultra-low borrowing costs. As competition between multiple buyers for reduced inventory continued so did the annual price growth!
There were 10,970 sales reported through TRREB’s MLS System in February 2021 which resulted in a 52.5 per cent increase compared to the 7,193 sales we saw in February 2020- right before the COVID-19 pandemic swooped into our city. Out of all market segments, the condominium apartment segment was certainly a frontrunner with a 64 per cent increase compared to February 2020.
The demand for housing that we saw in the tail-end of 2020 has most definitely carried through into the first quarter of this year with some similar themes- including the continued demand for suburban low-rise properties. It is also very apparent that the supply of listings is unable to keep up with the demand from Buyers, which could present a larger concern once population growth picks up following widespread COVID-19 vaccinations later this year and into 2022.
The MLS Home Price Index Composite Benchmark was up by 14.8 per cent compared to February 2020. We also watched the average sale price grow by 14.9 per cent to $1,045,488. Market conditions remained tight throughout the GTA in February, the detached, semi-detached and townhouse home types in suburban areas were the primary drivers of the price growth, with over 20 per cent increase in all 3 cases!
While the GTA lacks an adequate amount of inventory compared to active Buyers, we will continue to see the effects of supply and demand support double-digit price growth this year. Furthermore, if we continue to see the growth in condo sales surpass the growth in new condo listings in Toronto, rehabilitated price growth in this market segment is a definite possibility in the second half of 2021.
There is no doubt that transacting in Real Estate has definitely transformed, however, it is not nearly impossible. We have had the pleasure of servicing a number of our clients during this pandemic resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.