Although having observed a cooling down of sales since the 2nd quarter of this year, Toronto home prices and demand continue to go up while supplies plummeted. The Toronto Regional Real Estate Board (TRREB) reports that there was a 20% drop in sales from a year ago and a staggering decrease of 43% in supplies. Yet, average home prices continue to go up by 12.6% at $1,070,911.
Low sales just usual trend in August
It is not unusual to have a drop in sales by August, which is a break from the spring and summer housing market activities as people begin to prepare for the fall. What makes this year's August sale distinguished is that it is being compared to last year's performance when buyers surprisingly broke tradition with record high sales.
Market conditions remain tight
Competition between buyers remain tight, only to be expected as home supplies continue to drop and unable to meet demands from buyers. This month's new listings are at its lowest level for the past decade and is definitely alarming once immigration comes into full force. Multiple offer situations are still common with homes getting sold at a very fast rate. Without relief in supplies, the huge demand for homes across GTA housing market continues resulting to double digit increase in home prices.
Let us take a look now at the numbers presented by TRREB in their latest August 2021 statistical update for GTA.
Source: TRREB September 2, 2021
Year-over-year Total Residential Transactions
August 2020 - 10,738
August 2021 - 8,596
There is a decrease of 19.9% in sales compared to last year. The same downward trend was recorded in August 2021 sales result over July 2021.
July 2021 - 8,814
August 2021- 8,579
There was a decrease of 2.7% in sales compared the previous month.
The number of home sales in August 2021 decreased by 19.9% on a year-over-year basis, and a decrease of 2.7% from last month.
The average selling price of homes is still going strong in its upward trend.
August 2020 - $ 951,219
August 2021 - $ 1,070,911
There is a 12.6% increase in selling price compared to last year.
The same can be said for the average selling price compared to the previous month
July 2021 - $ 1,074,957
August 2021 - $ 1,100,820
There is an increase of 2.4% in selling price compared the previous month.
Total New Listings added to the Market
August 2020 - 18,599
August 2021 -10,609
There was a huge drop in new listings by 43% in a year-over-year basis.
The August 2021 % Sales-to-New Listings Ratio of 81% increased by 23% compared to 58% of August last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
There is an unprecedented increase of 155% in condo sales compared the previous year. There was also an increase in the average selling price for condos.
Q2/20 - $ 619,521
Q2/21- $ 686,312
There is an increase of 10.8% in average selling price compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
Q2/20 - 8,771
There is a massive increase of 64.6% in new listings compared the previous year.
From August 6 to September 3, there are a total of 523 sales in townhouses, a huge decrease of 31% compared to last year. There are 420 new listings, also down by 51% from last year. For the average selling price, a 1 Bd Townhouse can cost $ 643,000 which is 2% higher compared to the same month of last year. While a 2 Bd Townhouse cost $893,000 which is also an increase of 2% compared to the previous year.
August home sales may be cooling down, but definitely not in its prices. All types of homes have seen an increase in average home prices, even in suburban areas, and will likely continue to do so until supplies can meet the demand from home buyers. If you're thinking about entering the market as a buyer, now might be the time to do so before market conditions become tighter once population returns to pre-pandemic levels.
If you have any question about Toronto housing market or need help buying or selling your home, contact me at 647-834-9928 or send an email to firstname.lastname@example.org