Record breaking home sales continued into February 2021 with GTA Realtors reporting 10,970 sales through the Toronto Region Real Estate Board (TRREB)’s MLS System. Thanks to confidence in jobs and ultra-low borrowing costs, competition between buyers lead to a 52.5 percent year-over-year increase in sales.
“It’s clear that the historic demand for housing experienced in the second half of last year has carried forward into the first quarter of this year with some similar themes, including the continued popularity of suburban low-rise properties.” said TRREB President Lisa Patel.
As sales rose, so did prices. The MLS Home Price Index Composite Benchmark was up by 14.8 percent compared to the same period last year as was the average selling price which clocked in at $1,045,488, a 14.9 year-over-year increase. The double digit annual price growth was seen throughout the GTA but in particular in the suburbs surrounding Toronto. Tight market conditions were bolstered by the detached, semi-detached and townhouse market segments in the aforementioned suburban areas. All three segments rose above 20 percent on an annual basis.
As for the near future, Mrs. Patel said, “It’s also evident that the supply of listings is not keeping up with demand, which could present an even larger problem once population growth picks up following widespread vaccinations later this year and into 2022.” TRREB will certainly continue to call on policymakers to make a stronger commitment to turn the GTA’s housing challenges into long-term solutions.
The Condo Market Is Back in Focus And Driving Sales
Demand, sales and prices continued to grow throughout February 2021. TRREB’s MLS System recorded a record breaking 10,970 home sales, a staggering 52.5 percent increase compared to February 2020’s 7,193 reported sales. This, paired with a double digit increase in annual price growth, spells out further tight market conditions and competition between buyers.
The MLS Home Price Index Composite Benchmark was up by 14.8 percent compared to the same period last year as was the average selling price which clocked in at $1,045,488, a 14.9 year-over-year increase. The double digit annual price growth was seen throughout the GTA but in particular in the suburbs surrounding Toronto. Tight market conditions were bolstered by the detached, semi-detached and townhouse market segments in the aforementioned suburban areas. But how did the condo market factor in?
Considering all areas of the GTA combined, the condominium apartment segment led the way in terms of sales. The market showed a 64 percent increase in sales compared to last year, with similar rates in the ‘416′ and ‘905′ area codes.
“In the absence of a marked uptick in inventory, the current relationship between demand and supply supports continued double-digit average home price growth this year. In addition, if we continue to see growth in condo sales outstrip growth in new condo listings in Toronto, renewed price growth in this market segment is a distinct possibility in the second half of the year,” said TRREB Chief Market Analyst Jason Mercer.
