Real Estate Market Commentary – March 2021
It was a record-setting February for real estate in the GTA. With 10,970 sales reported through the Toronto Regional Real Estate Board’s (TRREB) MLS system, there was a 52.5% increase compared to February 2020.
Sales were up for all major housing types, both in the City of Toronto and surrounding areas. Condominium apartments led the way with an annual increase of 64.3%. Of the 3116 condo units sold, 2167 were in the 416, demonstrating strong interest in the local condo sector. Sales of single detached homes were up 43.8% with 4943 sales, semi-detached homes rose 53.1% with 977 sales, and townhomes were up 62.5% with 1841 sales.
Rising demand for ground-level housing outside the City of Toronto continues to be a key housing trend to monitor. In February, roughly 80% of all low-rise sales on the MLS occurred in the 905.
However, the key statistic to follow remains the shortage of housing supply. Though New Listings rose by 42.6%, Active Listings are down 1% from the same period last year. At the end of February, there were only 8727 active listings on the MLS, representing less than a 0.8-month housing supply. Looking closer, there is a 0.86-month supply for single detached homes, a 0.54-month supply for semi-detached homes, a 0.36-month supply for townhomes, and a 0.85-month supply for condo apartments.
These are extreme ‘seller’s market’ conditions, and they are putting pressure on home prices. In February, the average sales price of $1,045,488 was an increase of 14.9% year-over-year. The MLS Home Price Index (HPI) Composite Benchmark was up 14.8% in February, indicating that home sale prices were in line with inflation.
Looking at pricing by category for February, detached homes sold for an average of $1,371,791, representing a year-over-year increase of 23.1%. The average price for semi-detached homes was $1,050,820 (+20.3%) and townhomes rose to $858,025 (+17.3%). The average price of condos was $642,346, down 3.7% from a year earlier. It is worth noting, however, that this price softening is generally found in the City of Toronto. Condo prices in the 905 were up 5.4% on average.
The market for real estate remains strong across the GTA. Supply is limited, competition is high, and the cost of borrowing remains low. If you have questions, be sure to speak with a Harvey Kalles Real Estate sales professional to get the guidance you need to stay informed.