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.
The greater Toronto real estate market continues to be extremely active as the Toronto Regional Real Estate Board (TRREB) recorded the sale of 11,951 listings. While more homes came on the market, 12,252, they were still not enough to shift the market from a sellers’ advantage. TRREB shows approximately one month supply of listings vs sales, which is expected to continue moving forward. We need approx 3 months supply for a balanced market. The tight conditions pushed the average selling price in May to $1,108,453 an all-time record. So now is still a great time to list. Normally, the most active months for the TRREB area have been either April, May or June. This year is anythng but normal, the most active month to date was March with 15,646 listings being sold, which is expected to stick as the most active month for 2021. With over 13,500 listings sold in April and almost 12,000 in May, there seems to be no end in sight to the demand for housing in the GTA.
The government’s recent increase of the stress test to qualify for financing is not expected to hinder demand activity much, if at all. Consider that Canada has committed to allow over 1.2 million immigrants into the country over the next three years. The government fails to recognize the strong desire for owning a home in Canada. The higher stress test will just force affected Canadians, who do not qualify for financing in their preferred location, to move further away from major centres like Toronto into communities with lower prices. We are seeing that already.
I am continually asked, “Should I wait to buy or buy now?” While nobody can predict the future there is nothing on the horizon to indicate that either demand or prices will decrease. More immigration than ever before from outside of Canada and migration from other provinces, foreign students returning once Covid is over, rising cost of construction materials and labour, are all factors that will continue to fuel rising prices locally. So while it may seem self-serving, I must say this is a great time to buy. Even first-time buyers should step in now at a level they can afford. At least in this way they, move forward with the market.
The caveat is you not sell yourself short by choosing an agent who just wants to sell your home and quickly move on to the next deal. Just because they sell a lot in your neighborhood won’t ensure they will sell your home for a lot. If they don’t care about the relationship, how much can they care about the outcome in guiding you through the preparation and negotiation to get you the absolute best outcome?
When you buy or sell with me, you get an experienced, knowledgeable and relationship driven realtor to help you through all the details, because the details matter in the end. Many realtors just sell houses while I provide professional guidance and protect the interests of my clients in one of the largest complex financial transactions they will make in their lifetime. In other words I put your interests above mine, take my time to get it right and mind the details from start to finish.
If you’re thinking of buying or selling or know someone you care about who is, please contact me, I would love to help and…. Make A Difference!
Have a great June and stay safe,
April’s home sales of 13,663, set a new record for April in any year. I should point out that it’s more than quadruple April 2020 but that was the first full month of the pandemic. We knew the number would pop but 4X is a “WOW! Despite 20,825 new homes coming onto the market, that was still not enough inventory to meet demand and the average GTA home price increased to $1,064,261, from March’s average price of $1,015,392.
Prices increased in all sectors of the market and areas including the outskirts of the GTA as home buyers chose to move further away from the city to afford their changing needs. Communities in York, Durham, Simcoe, and others saw price increases of 20%-40% year over year as the demand for those communities exploded. All this growth is without the expected 400,000 new immigrants set to arrive in Canada over the next year. Together with the increasing cost of construction, it seems obvious that prices will continue to rise bolstered by ultra-low borrowing rates.
Despite the hot market, here’s a little-known fact. All homes listed for sale do not sell! That’s right, not all homes sell! And the overhyped “over asking” will likely continue in lockstep with low inventory. Maybe that is a discussion onto itself perhaps for a later time. Some realtors would have you believe that a house sells itself, that the realtor the company and the brand you choose makes no difference. Well, here are the facts:
The Toronto Real Estate Board reported that for the first 4 months of the year, there were 68,156 homes listed for sale and 47,157 sales. As of the end of April, there were 11,668 homes available for sale. That leaves 9,331 that did not sell. In any market, dealing with a full-time professional realtor is important, in this hot Seller’s market it is imperative. And if you recognize McDonald's, Apple and REMAX, then you understand brand power.
Owning a home is one of the most important investments anyone will make in their lifetime and dealing with the best will ensure safety, success and prosperity. If you are considering a move, purchasing an investment property or know someone who is, please message me and let me put my negotiating skills, marketing expertise, the efficient power of my brokerage and the REMAX brand all to work....
...Making A Difference For You!