The Toronto Real Estate Board reported that August 2021 was the third-best sales record for the month of August. Sales volumes have definitely slowed down compared to the earlier part of this year which is completely normal (the real estate market has historically always slowed down in July and August with the exception of 2020 due to the pandemic and a non-existent spring market). However, demand has continued high while listings are down which has placed upward pressure on sale prices.
It is not unexpected for us to experience a cooling down of the housing market during the summer months. In August 2021 new listings were down 43% compared to August 2020. We had 10,609 new listings compared to 18,599 new listings in August 2020. The condo market has definitely bounced back and we are now seeing price increases on condos as well.
Greater Toronto Area Housing Market Update
Although sales activity has dropped average sales price is now $1,070,911 which is a 12.6% increase from August 2020 but demand for homeownership remained well above average for this time of year. Demand for housing remained very strong in August 2020 with many properties selling in bidding wars. For the month of August new listings were the lowest in a decade which is very concerning and if listings do not increase in the near future this will continue to place pressure on prices once population growth starts to happen with increased immigration.
All Federal election parties have all made housing supply and affordability a focal point however the core issue is that we do not have enough housing supply to meet demand and the Federal government needs to work with provincial and municipal levels of government to address housing supply issues that will ultimately address affordability. I am a strong believer that no other government incentives will address affordability until the supply of housing increases.
All housing types have experienced upward price increases in August and the condo market both in the 416 and 905 area codes have definitely bounced back. The suburbs continue to see higher price increases than the City of Toronto and this trend will probably continue until we are through the pandemic and more and more employees return to working downtown.
In August due to the reduced number of listings and many buyers still searching for a home, it felt like we were returning to the January – March 2021 frenzied real estate market with many homes selling in bidding wars with multiple offers. This trend will most likely continue into 2022 as immigration opens up and we experience population growth.
If you are considering buying a home now is the time to get into the market if at all possible as it will most likely be some time before we see the real estate market start to cool off.
Are you thinking of buying, or selling reach out, and let’s begin the process give me a call?