The Toronto real estate market continued to be extremely active in July but the pace has eased somewhat for now. The Toronto Regional Real Estate Board (TRREB) reported sales of 9390 homes a 19.9 % drop from July 2020 and overall inventory was down more than 35%. Keep in mind that by summer of 2020 the pent-up demand from the early months of the pandemic was emerging at full throttle. July’s supply of listings was not enough to ease the tight market conditions so the significant level of multiple offers continues.
The combined average selling price in July of all types of homes, freehold and condo, came in at $1,062,256 which is 12.6% higher than 1 year ago. The detached market segment led the way in terms of price growth and continued to be driven by sales in the suburban regions surrounding Toronto. On a seasonally adjusted basis, the average price was up by 0.9 per cent compared to last month.
The annual rate of price growth remains in double digits but has moderated since the early spring. All this is still without the benefit of open borders which may begin to impact the market as fully vaccinated immigrants arrive in the coming weeks. This will put additional pressure on pricing and inventory. Our government needs to streamline its approach for new developments and renovation applications to help ease the inventory situation in the GTA. Financing rates remained stable as the Government of Canada seems content to leave things as they are. Rising cost of construction materials and labour are all factors expected to keep prices increasing for the foreseeable future.
The advice today is not much different than over the last few months. If you’re thinking of buying or selling, or know someone who is, please know that I am here to help. Let my real estate experience guide you through the process and my business experience negotiate the right deal for you.
Remember, putting clients’ interests above mine is a priority while providing professional guidance and protection in one of the largest financial transactions clients will ever make. I am always available to help you and grateful if you have someone you care about to refer!!
Have a great rest of the summer and stay safe.