A Strong Start to 2021

The market for real estate in the GTA has gotten off to a strong start for 2021. The Toronto Regional Real Estate Board (TRREB) has posted the sales figures for January, and the 6,928 sales reported through the MLS System represent a 52.5% increase over January 2020.

Sales were up for all major housing types, both in the City of Toronto and the surrounding areas. Condominium apartments sales were up 85.5% over the same time last year. In a vote of confidence for the local condo sector, of the 2471 units sold, 1703 were in the 416. The sales for single detached homes were up 34.4% from a year earlier with 2766 sales, semi-detached home rose 48% with 506 sales, and townhomes were up 44.8% with 1124 sales.

Demand for ground-level housing continues to be a key real estate trend to monitor. In January, 78.5% of all low-rise sales on the MLS took place outside the City of Toronto.

The other major story continues to be a shortage of housing supply. Though new listings rose by 20.2% in January, active listings are down 4.8% from the same period last year. At the end of January, there were 7396 active listings on the MLS, representing less than 1.1 months of supply. Looking closer, there is a 1 month supply for single detached homes, a 0.6 month supply for semi-detached homes, a 0.4 month supply for townhomes, and a 1.3 month supply for condo apartments.

These seller’s market conditions continued to put upward pressure on pricing in January. The average sales price of $967,885 is an increase of 15.5% year-over-year. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a more accurate indicator of market inflation, was up 11.9% over January 2020.

Looking at pricing by category for December, detached homes sold for an average of $1,359,915, representing year-over-year gains of +31.2%. The average price for semi-detached homes was $996,794 (+26.6%) and townhomes rose to $803,578 (+15.9%). The average price of condos was $600,830, down 4.7% from a year earlier.

The market continues to shift. Supply is limited, demand is high, and buyers housing needs are changing. If buying or selling real estate is a part of your plan for 2021, be sure to speak with our team to get the guidance you need to make a properly informed decision.

For over 36 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at info@christensengroup.ca or calling us at 416-441-2888 ext. 772.