real estate

Skyrocketing real estate in Toronto falls back down to earth

Toronto real estate sales and prices returned to pre-pandemic seasonal trends in June 2021 following a record-setting streak over the spring has “run its course,” according to the latest market report.

The Toronto Regional Real Estate Board’s (TRREB) market report for June shows home sales have declined from highs seen this past spring, but are still above numbers seen last year.

Sales were up 28.5 per cent in June compared to 2020, hitting 11,106, according to TRREB, driven by strong condo sales that were up 57 per cent.

Similar trends were seen in prices, as well. The average selling price of all home types combined was up 17 per cent from 2020, to  $1,089,536.

Condo prices were up more than eight per cent, “well-outstripping inflation,” the report said.

Prices did drop, though, for semi-detached homes within the 416-area code region of the GTA. They were down 1.9 per cent compared to last year, while sales for the home type were up more than 60 per cent in the same area.

“We have seen market activity transition from a record pace to a robust pace over the last three months,” said TRREB President Kevin Crigger.

Crigger warns though that higher demand from new immigrants as COVID-19 border restrictions ease is only “months away,” which could put more pressure on the market due to tight supply.

“The only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region,” he said.

The TRREB report showed that sales have outpaced new listings year-over-year, which has created “tight” market conditions — such as fierce bidding wars — and fuelled higher prices.

TRREB Chief Market Analyst Jason Mercer predicts that prices throughout the entire GTA region will stay “well above” $1 million through to the end of 2021 as supply continues to lag, but that the record pace of sales over the spring has “run its course.”