Greater Toronto, Ontario, July 6, 2021 - The Toronto Regional Real Estate Board’s (“TRREB”) president Kevin Crigger this morning released the Board’s “MarketWatch” monthly stats update of Toronto & GTA residential real estate activity reflecting continued strength in demand alongside tight inventory, thus driving price growth virtually across the board. Prices were up more strongly in the low-rise group versus the hi-rises, though the strongest jump in sales volume was actually seen by the Condo Apartment market outside Metro T.O.
The Big Picture
June’s overall average selling price was off slightly versus May, 2021. This is the historical norm given the seasonality of the home market. All figures quoted herein are year-over-year comparisons unless specifically noted otherwise.
Overall [meaning all home types across TRREB’s full market area], 11,106 residential sales were reported through the Board’s MLS system at an average selling price of $1,089,536. That’s a rise of 17% for prices and 28.5% for sales volume.
Metro Toronto saw 1,085 sales of Detached homes in June, a 21.9% rise over last June, averaging a selling price of $1,699,881, up 11.5%. In the rest of the Greater Toronto Area 4,084 Detached sales were reported, up 15.9%, averaging $1,329,873, up 29.4%.
Condo apartments appear back in vogue as the pandemic wanes: In “The 416”, 1,901 units were reported sold on the month, up 48.6%, averaging $717,466, up a relatively modest 6.7%. Out in “The 905”, 899 sales were reported, an upward spike of 78.4% at an average of $611,610, up a healthy 15.9%.
On the Inventory Front
The number of homes newly listed for sale was virtually flat at 16,189 which represented a .1% drop from last June. The more indicative Total Active Listings however were down 19.3% as inventory remains relatively constrained which, of course, supports prices.
“Forward Inventory” gives us an indication of how much inventory is currently on available assuming the rate of sales continues unchanged [Active Listings divided by the month’s sales volume]. That stood at just 1.017 months - still pretty tight by historical standards [1.6 months a year earlier]. The “Absorption Rate” - the rate at which the market is “absorbing” newly listed properties in the form of sales - was .686 as of month-end [.534 a year earlier].
Not surprisingly, homes sold “28% faster” this June versus last at 13 days on the market compared to 18. The “Property Days on Market” figure was down 34.6% to 17 days. This latter figure includes homes re-listed by the same brokerage.
TRREB President Kevin Crigger, from the report: “We have seen market activity transition from a record pace to a robust pace over the last three months. While this could provide some relief for home buyers in the near term, a resumption of population growth based on immigration is only months away. While the primary focus of policymakers has been artificially curbing demand, the only longterm solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region."
Bungalows in Toronto and the GTA
Demand for one storey low-rise homes remained very high in all parts of TRREB’s market area - and all parts of South-Central Ontario from what we're hearing - with the number of multiple offer situations generating much frustration - and higher relative prices - in virtually all neighbourhoods. We don’t see this trend fading anytime soon as empty nesters and downsizers compete for generally smaller homes with most of their amenities on one level. The Bungalows are also attractive to younger buyers as they still represent a relatively lower entry point to the freehold and low-rise markets. Contractors and renovators are also attracted to this style of home for “reno & flip” opportunities as well as the demolishing and rebuilding activities, the focus often being the larger lots single storey homes were originally constructed on in the case of older, more mature neighbourhoods.
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