For the fourth month in a row, detached homes show a decline in sales. The same downward trend can be noted for semi-detached and townhouses. However, condo real estate transactions show that there is still strong demand for homes in GTA. In a record-breaking feat, July numbers for condo market had a staggering increase of 155% in sales in a year-over-year basis. This was unprecedented, and even surpassed pre-pandemic levels for condo sales.
Detached homes out of reach for many buyers
There are a couple of factors that might have contributed to this sudden shift in the housing market. First, detached home prices remain high which makes it not an option for many, especially first-time home buyers. Currently, the average price for detached homes is more than $1.06 million, driven by sales in suburban areas. Despite being low in sales for four months in a row, its almost 9,400 sales for this month are still relatively above average.
Condo market has abundant supplies and more affordable options
Also, the market for detached homes remains tight because of limited supplies. This month, the number of new listings dropped by 30.7%, which could further fuel price growth. With the resurgence of population due to the anticipated arrival of citizens seeking permanent residency, these newcomers are likely to settle and look for homes in metropolitan areas of GTA. If supplies for detached homes remain limited, new residents would likely fall on the condo market which has recently seen a boost in listings. As of July, there was an increase of 64.6% in new listings for condo apartments in a year-over-year basis.
Luxury homes slowly getting steam
Other than the condo market, luxury homes in GTA has also seen unprecedented growth in sales in the first half of 2021. There were 414 properties worth over $4 million sold, which is 300% up compared to the first half of 2019. While 29,394 properties were sold for over $1 million, 240% up compared to same period in 2019. The market growth for luxury homes might partly be because of how the current average home prices are reaching the price level of homes traditionally considered as luxury.
Let us take a look now at the numbers presented by TRREB in their latest July 2021 statistical update for GTA.
Source: TRREB August 5, 2021
Year-over-year Total Residential Transactions
July 2020 - 11,033
July 2021 - 9,390
There is a decrease of 14.9% in sales compared to last year. The same was recorded in July 2021 sales result over June 2021.
June 2021- 9,011
July 2021- 8,827
There was a decrease of 2% in sales compared the previous month.
The number of home sales in July 2021 decreased by 14.9% on a year-over-year basis, and a decrease of 2% from last month.
The average selling price of homes is still in its upward trend.
July 2020 - $ 943,594
July 2021 - $ 1,062,256
There is a 12.6% increase in selling price compared to last year.
There is little movement in the average selling price compared to the previous month.
June 2021 - $ 1,061,331
July 2021 - $ 1,071,405
There is a slight increase of 0.9% in selling price compared the previous month.
Total New Listings added to the Market
July 2020 - 18,119
July 2021 - 12,551
There was a huge drop in new listings by 30.7% in a year-over-year basis.
The July 2021 % Sales-to-New Listings Ratio of 75% increased by 14% compared to 61% of July last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q2/20 - 3,448
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 July 10 to August 7, there are a total of 601 sales in townhouses, a decrease of 15% compared to last year. There are 509 new listings, also down by 24% from last year. For the average selling price, a 1 Bd Townhouse can cost $ 697,000 which is 8% higher compared to the same month of last year. On the other hand, a 2 Bd Townhouse cost $869,000 which is an increase of 1% compared to the previous year.
July numbers show that the condo market is on fire, and will likely stay that way in the coming months once immigration is at full force. Despite a decline in sales for detached homes, limited supplies continue to drive home prices up. With detached homes being out of reach for many buyers, the condo market is a much better and more practical option.
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 email@example.com