The Toronto and GTA real estate market continued to break sales records and climb to new and greater heights as evidenced by the February statistics released by the Toronto Regional Real Estate Board (TRREB) this week.
Last month, there were more than 10,000 sales recorded by TRREB in February, a massive 52.2 per cent increase over the 7,193 sales reported in February 2020, pre-pandemic and more than double the number of sales for the same period in 2019. Although listings are also up from last year, it is not enough to meet the growing demand.
In 2006 GTA house prices were 4X median household income
In 2021 GTA house prices are 10X median household income
Are the millennials just avocado toast eating complainers?
Are the gen x/boomers terrible at math? pic.twitter.com/KPAS8XsTfE
— John Pasalis (@JohnPasalis) March 1, 2021
“In the absence of a marked uptick in inventory, the current relationship between demand and supply supports continued double-digit average home price growth this year. In addition, if we continue to see growth in condo sales outstrip growth in new condo listings in Toronto, renewed price growth in this market segment is a distinct possibility in the second half of the year,” said TRREB chief market analyst Jason Mercer.
As has been the case for much of the past year, regions outside the city of Toronto are far outpacing the price growth inside the 416. For example, in the city of Toronto detached home prices grew by 13.2 per cent over the past year, with semi-detached homes blooming by 9.4 per cent. Outside the city of Toronto, the growth was doubled at 27.8 and 25.6 per cent.
More Millennials have bought homes in 2020-2021 than ever expected because the unthinkable happened – Condo prices dropping, combined with record-low interest rates made the market more affordable.
Are you thinking about buying a Toronto condo to live in or for an investment? pic.twitter.com/J9fTWVDr8U
— John Burdi (@john__burdi) March 1, 2021
In addition, there is growing evidence to suggest a comeback in the condo apartment sector with sales on the upswing increasing more than 70 per cent when compared to last year. But prices, according to TRREB continue to drop year-over-year especially in the downtown core. The average price of a condo apartment in the 416 fell more than 6 per cent when compared to February 2020.
“The pandemic has not stunted GTA residents’ appetite for owning a home. Once the economy opens further and immigration into the GTA resumes, there will be an even greater need for housing supply. Understandably, COVID-19 has been front and centre for policymakers. However, it will be important to build upon the proactive work already started by local and provincial governments to promote the development of a more diverse and affordable housing supply in our region,” said TRREB CEO John DiMichele.