September 7, 2021 | Buying
While the market has taken its usual summer breather, TREB is reporting the 3rd best sales result on record for the month of August 2021. It is obvious that the homeowner demand has sustained and remains strong. However, the supply of new listings is down which has resulted in tighter market conditions and even more increased competition between Buyers. This competition has resulted in double-digit annual increases in selling prices.
8,596 sales were reported through TRREB’s MLS System in August 2021 which was down by 19.9% compared to last August’s record-breaking numbers of 10,738 sales. The condo market beat the overall sales trend, with year-over-year growth in sales recovery in 2021. The number of new listings was down year-over-year by a whopping 43%.
The number of new listings was at the lowest level that we’ve seen for the past decade which is very alarming. It is very evident that the supply is now keeping up with the consistent demand in the market. This situation will only become worse once immigration into Canada resumes. The upcoming federal election parties have all made housing supply and affordability a focal point amongst their campaigns. It has been made clear that solving the supply-related issues is much more important to adorability than interfering with consumer choice during the home buying and selling offer process or revisiting demand-side policies that will, at best, have a short-term impact on market conditions.
The 2021 MLS Home Price Index Composite Benchmark was up by 17.4% year-over-year. The average selling price was up by 12.6% year-over-year to $1,070,911. The strongest annual rates of price growth are still being seen in the freehold market, however, the condominium price growth is now well above inflation as well.
Sales have accounted for a much higher share of new listings this year compared to last, and the story was no different in August. There has been no relief on the supply side for home buyers, in fact, competition between these buyers has increased. As we move toward 2022, expect market conditions to become tighter as population growth in the GTA starts to trend back to pre-COVID levels.
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.