When it comes to the overall market, conditions have tightened even further compared to a year ago, with new inventory unable to keep up with the demand. This continued seller’s market continues to the drive the price upwards, with the average detached home in toronto selling for over $1.6 Million dollars last month. However, growth is dwarfed by the suburbs around Toronto, which collectively marked a skyrocketing 27% year-over-year increase in the price of detached homes.
Even though sales rang in below July 2020, the home price index was up 18.1%, with the overall average selling price up 12.6%. As for our month-to-month movements, July’s sales came in at 0.9% above June, showing that we’re still catching some positive momentum in the overall market, and households are still competing to secure a home on the market.
Here’s what happened last month in the GTA:
- Greater Toronto Area REALTORS reported 9,390 home sales in the GTA; a decrease of -14.9 %
- There were 12,551 new listings in the GTA; a decrease of -30.7% compared to July 2020
- The average selling price for all home types reportedly increased by 12.6%
- The average condominium apartment price was up by 10.8% compared to July 2020
This month, it’s important to notice the condominium market, which in the last 3 months has seen rentals more than double compared to a year ago and up by 13.3% compared to the first quarter of this year. Since the supply of listings didn't grow as quickly, we’re seeing rental market conditions tightening & we expect this to continue as the resurgence in the student population has kicked into gear. For the second quarter as a whole, one-bedroom rents are still down around 10% compared to the second quarter of 2020, but we've seen an increase of 3.7% since quarter one of this year. Combined with two-bedroom condo statistics which are down 5% since one year ago, but have come up 5% already since quarter one of this year, this shows that the worst of the decline is behind us.
To sum up this month’s data, we'll conclude with a quote from TRREB CEO John DiMichele; “There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas,” said TRREB CEO John DiMichele.
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 here!
What should you do if you’re thinking about buying or selling? Check out our sellers guide here 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