Two months in a row we’ve seen over 50% growth in year-over-year home sales. There would be absolutely no surprise if we record the same trend next month. The record home sales continue, as the persistent low interest rates drive buyers to take advantage of the opportunity, for the most part, in the suburbs surrounding Toronto.
Here’s what happened last month in the GTA:
- The Toronto Regional Real Estate Board reported 10,970 home sales in the GTA; an increase of 52.5% compared to February 2020. This includes a 64% increase in condo apartment sales, showing that buyers are absolutely soaking up the price stagnation!
- Toronto’s home price index and average selling price both reported increases just under 15% since last February. This is led by suburban areas around the gta, which saw more than 20% growth in all segments other than condo apartments, up to 27.8% average growth in detached homes.
- Cities like Innisfil and Cambridge have seen a 38% and 36% average price increase, respectively. $500k homes in January 2020 are now worth more than $700k just one year later.
- While new listings are up 42.6% to 15,137 over February 2020, it is simply not enough to keep up with demand.
“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,” - TRREB Chief Market Analyst Jason Mercer.
As a slight drop in the high-density population of Toronto can populate entire small towns, cities to the North of Toronto like Innisfil saw a 38% uptick in the average sale price as buyers continue the mass exodus along every major route out of the city. 35% higher as a whole for Simcoe County to the North, 36% for Cambridge to the West, and almost 30% higher for the Durham Region to the East. However, once again, we’re seeing a shift towards the end of the month - some cities like Hamilton and Niagara are reportedly seeing competition start to fatigue and stabilize, so we’ll be looking forward to seeing how the month of March looks on paper, as we mark one year since the beginning of the lockdowns.
Interestingly enough, Cambridge condos also saw an uptick of almost 60% since February 2020, while Toronto condos declined 6.4% as a whole. Considering $500k in Toronto can get you 3 times as much space in Cambridge, the work from home lifestyle seems to be much more comfortable in that part of the Province.
Is now the time to buy? It might depend on what your desired areas and budget are. Is now the time to sell? YES.
Think you’re ready to start looking? Download our Ultimate Guide to Buying your Dream Home here and check out our home search function below!
What should you do if you’re thinking about buying or selling? Consider the above information and give Zubin, Mansoor or Karl a call. Market conditions are changing quickly, but we have you covered. Let us make a plan that works for you based on price, location and timelines. We know our market and we’re here to help.
Read the full TREBB report here
Reach Out Today! We have you covered.
Email us at email@example.com
Zubin Abuwalla | Direct: 416-389-8019
Mansoor Ahmed | Direct: 647-297-1721
Karl Abuwalla | Direct: 647-883-0874