GTA Real Estate Market Update - July 2021
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We are starting to hear rumblings that the housing market is finally cooling off after 4 months of reduced sales volumes compared to 2020. If you recall we did not have a spring market in 2020 due to the pandemic and as a result, the spring market got pushed out into the summer and fall months in 2020. It is not unexpected for us to experience a cooling down of the housing market during the summer months and particularly even more so that things started to open up after the 3rd lockdown.
We experienced a 14.9% drop in sales in July 2021 compared to July 2020 and new listings were down by 30.7%. Demand for homeownership has however remained strong and as result prices are up by 12.6% compared to July 2020 which talks to the strength of the market. Buyers are still actively looking for that next home.
Greater Toronto Area Market Update
Although sales activity has dropped the average sales price is now $1,062,256 which is a 12.6% increase from July 2020 and demand for homeownership remained well above average for this time of year. We are actually seeing market conditions tighten relative to July 2020, with sales accounting for a greater share of new listings compared to this time last year. New listings in July 2021 were down 30.7% and active listings are down 35.2% compared to July 2020.
Demand for housing ownership has remained strong despite the pandemic-related impact on population growth and the halt of immigration.
In 2021 the condominium market has seen a dramatic turn-around compared to 2020 and we are seeing price increases in both the Toronto and suburban areas.
Across all housing segments in Toronto and the suburban areas are seeing housing price increases compared to July 2020. The suburban 905 areas continued to see higher price appreciation than Toronto. Detached homes in the suburbs continue to see the highest price appreciation compared to the other house segments.
We continue to remain in a seller's market although the frenzied seller's market that we saw in the earlier part of 2021 has somewhat cooled down a bit. With immigration opening up and the continued short supply of housing, we will most likely continue to be in a sellers’ market for some time and hence will continue to see upward pressure on housing prices.
The cooling that we are currently experiencing is completely normal during the summer months what we experienced in the summer of 2020 was not normal as the spring market that did not take place in 2020 was pushed out to the summer and balance of 2020.
Are you thinking of buying, or selling reach out, and let’s begin the process?