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Home Sales in Toronto up by 362% since last April, signs of cooling down month-over-month

Wednesday, June 2, 2021   /   by Sushma Khinvasara

Home Sales in Toronto up by 362% since last April, signs of cooling down month-over-month

Image credit to the owner

Do you remember how the housing market was a year ago? It was the first full month of the COVID-19 pandemic and the number of properties sold suffered terribly at just 2,957. Sales for April this year showed remarkable recovery as it increased by 362% with 13,663 homes sold. However, if we compare April sales to the first three months of the year marked by intense market of soaring prices, limited supplies and bidding wars, Toronto's raging house market showed its first signs of cooling down in the month of April.

Home sales in April dropped by 19.7% compared to previous month's record of 13,406. The same goes for the average selling price with a slight decline of 3.6% from last month's 1.08 million. Total number of new listings reported soared up to 237% in a year-over-year basis, but decreased on month-over-month.

According to TRREB President Lisa Patel, "It makes sense that we had a pullback in market activity compared to March. We've experienced a torrid pace of home sales since the summer of 2020 while seeing little in the way of population growth. We may be starting to exhaust the pool of potential buyers within the existing GTA population. Over the long term, sustained growth in sales requires sustained growth in population".

Despite this slowing down in the market, it can be expected that home price appreciation for major home types will continue its upward trend as low borrowing costs continue to attract buyers while supplies remain limited. Adding to that, GTA anticipates a renewed population growth over the next year.

Let us take a look now at the numbers presented by TRREB in their latest April 2021 statistical update for GTA.

Source: TRREB May 4, 2021

Residential Statistics

Year-over-year Total Residential Transactions

April 2020 - 2,957

April 2021 - 13,663

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There is an incredible increase of 362.1% in sales compared to last year. However, there was a significant decline recorded in April 2021 sales result over March 2021.

March 2021 - 13,406

April 2021 - 10,759

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There was a decrease of 19.7% in sales compared the previous month.

The number of home sales in April 2021 increased by a breakthrough record of 362.1% on a year-over-year basis, and a decrease of 19.7% from last month.

The average selling price of homes continues to rise steadily.

April 2020 - $ 820,226

April 2021 - $ 1,090,992

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There is a 33% increase in selling price compared to last year.

A downward trend is observed in the average selling price compared to the previous month.

March 2021 -$ 1,088, 801

April 2021 - $ 1,049, 874

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There is a decrease of 3.6% in selling price compared the previous month.

Total New Listings added to the Market

April 2020 - 6,180

April 2021 - 20,825

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The number of new listings jumped to a record high of 237% in a year-over-year basis.

The April 2021 % Sales-to-New Listings Ratio of 66% increased by 18% compared to 48% of April last year.

Condominium Sales Statistics

Year-over-year Total Condo Apartment Sales

Q1/20 -5,226

Q1/21- 9,398

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There is an increase of 79.8% in condo sales compared the previous year. However, the average selling price for condos has a slight drop.

Q1/20 - $ 654,570

Q1/21- $ 645,219

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There is a decrease of 1.4% compared the previous year.

Here is the summary of the listings of condominiums

Year-over-year Total New Listings

Q1/20 - 7,964

Q1/21- 11,373

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There is an increase of 42.8% compared the previous year.

Townhouse Sales

From May 1 to May 29, there are a total of 940 sales in townhouses, an increase of 176% compared to last year. There are 1,022 new listings, up by 188% from last year. For the average selling price, a 1 Bd Townhouse can cost up to $769,000 which is 35% higher compared to the same month of last year. On the other hand, a 2 Bd Townhouse cost $911,000 which is an increase of 13% compared to the previous year.

As a summary, home sales in April showed its first signs of slowing down as the housing market starts to exhaust the pool of potential buyers in the region's limited population. It is likely though that home prices will keep its upward trend driven by increased demand due to low borrowing costs and also the anticipated increase of population by immigration over the next year.

If you have any question about Toronto housing market or need help buying your new home, contact me at 647-834-9928 or send an email to sukhinvasara@gmail.com


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Century 21 Green Realty Inc. | Sushma Home Selling Team
Sushma Khinvasara, Sales Representative
6980 Maritz Dr, Unit 8
Mississauga, ON L5W 1Z3
647-834-9928

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®.
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2021 Last Updated October 24, 2021
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