A ROBUST JUNE: WHAT’S HAPPENING IN THE MARKET?

Home sales in June 2021 were up compared to the sales we saw this time last year, however, numbers remained below the March 2021 peak and were lower than the number of transactions reported for May 2021. The regular seasonal trend remained consistent, the average selling price in June increased by double digits compared to last year as well, but the annual rate of increase moderated compared to the previous three months.

GTA Realtors reported 11,106 sales through TRREB’s MLS System in June 2021 – up by 28.5% compared to June 2020. Looking at the GTA as a whole, year-over-year sales growth was strongest in the condo apartment category, both in the City of Toronto and some of the surrounding suburbs. Sales continued to trend lower in June, on a month-over-month basis while seasonally adjusting.

Market activity has transitioned from a record place to a robust place over the last three months. While this could provide some relief for homebuyers in the near term, a recommencement of population growth based on immigration is only months away. While the key focus of policymakers has been artificially curbing demand, the only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region.

Year over year growth in all general market segments well outperformed the growth in new listings over the same period, pointing to the continuation of tight market conditions depicted by competition between buyers and solid price growth. On a month-over-month basis, both actual and seasonally adjusted average prices edged lower in June.

The June 2021 MLS Home Price Index composite benchmark was up by 19.9% year-over-year. The average selling price for all home types combined was up by 17% over the same time period to $1,089,536. While price growth continued to be driven by the low-rise segments of the market, is important to note that the average condominium apartment price was up by more than 8% compared to June 2020, well-surpassing inflation.

There is no doubt that transacting in Real Estate has certainly transformed- Throughout this pandemic we have had the pleasure of servicing a number of our clients, 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.