July 2021 has seen the demand for house purchases staying way above the usual seasonal average, even though it was lower than last year’s July record.
There were tighter market conditions compared to this time in 2020, with a larger share of new listings coming from sales. Annually, a double-digit price growth rate remained.
There were 9,390 sales reported via the Toronto Regional Real Estate board’s (TRREB) MLS System for July. This compares to 11,033 in July 2020, 14.9 per cent higher.
TRREB President Kevin Crigger had the following to say: “Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place.”
The MLS Home Price Index Composite Benchmark rose by 18.1 per cent compared to the same period in 2020. Combining all types of homes, the average house price was 12.6 per cent higher than last year, coming in at $1,062,256.
In terms of growth, the detached market segment came out in front, with sales in Toronto’s surrounding suburbs driving the way. The average price was 0.9 per cent higher than in June.
The demand for buying houses remained a long way above the usual seasonal average in July 2021, despite not reaching the record set in July 2020.
Market conditions were tighter than the same period last year, with house sales representing a larger share of new listings.
The price growth rate remained in double digits. 9,390 sales were accounted for in the Toronto Regional Real Estate board’s (TRREB) MLS System for July. July 2020, in comparison, saw 11,033 sales, 14.9 per cent higher than this year. But how did the condominium market fare? There was an 8.2 per cent rise in sales of condominium apartments with 2,614 sold, the only market to have seen a year-over-year per cent change for this period.
The price growth rate in condominiums actually remained in the single digits at 6 per cent, compared with the double digits seen in detached, semi-detached and townhouses. The average price for a condo was $674,490.
TRREB Chief Market Analyst Jason Mercer said, “The annual rate of price growth has moderated since the early spring but has remained in the double digits. This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022”.