Image credit to the owner
For months in a row, homes sales in Toronto remain energetic as buyers continue to take advantage of low borrowing costs. More and more buyers are also slowly gaining confidence in the significant improvements in the economy. In March, there was a staggering increase of 97% in home sales compared to the same month last year. However, it is also important to take note that this month's stats was compared to the March 2020 performance at the start of the pandemic when home sales dropped rapidly.
With continued increase of activity in the market, demands for homes are quickly overtaking new listings. The Sales-to-New Listings Ratio increased by 14% and so is the steady increase of home prices which already hit the $1 million dollars mark. As long as the inventory remains low, affordability of homes will continue to suffer.
"While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability" said TRREB president Lisa Patel, in a release.
Let us take a look now at the numbers presented by TRREB in their latest March 2021 statistical update for GTA.
Source: TRREB April 5, 2021
Year-over-year Total Residential Transactions
March 2020 - 7,945
March 2021 - 15,652
There is a great increase of 97% in sales compared to last year. However, there was a slight decline recorded in March 2021 sales result over February 2021.
February 2021 - 13,631
March 2021- 13,545
There was a small decrease of 0.6% in sales compared the previous month.
The number of home sales in March 2021 increased by a high record of 97% on a year-over-year basis, and a decrease of 0.6% from last month.
The average selling price of homes continues to rise steadily.
March 2020 - $ 902,787
March 2021 - $ 1,097,565
There is a 21.6% increase in selling price compared to last year.
The same increasing trend goes for the average selling price compared to the previous month.
February 2021 - $ 1,040,985
March 2021 - $ 1,085,071
There is an increase of 4.2% in selling price compared the previous month.
Total New Listings added to the Market
March 2020 - 14,434
March 2021 - 22,709
The number of new listings leaped to 57.3% increase in a year-over-year basis.
The March 2021 % Sales-to-New Listings Ratio of 69% increased by 14% compared to 55% of March last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q4/19 - 5,358
There is an increase of 20.7% in condo sales compared the previous year. Additionally, the average selling price for condos is still growing steadily
Q4/19 - $ 616,771
Q4/20- $ 610,044
There is a decrease of 1.1% compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
Q4/19 - 6,407
There is a massive increase of 91.9% compared the previous year.
From March 13 to April 10, there are a total of 989 sales in townhouses, an increase of 223% compared to last year. There are 956 new listings, up by 141% from last year. For the average selling price, a 1 Bd Townhouse can cost up to $648,000 which is 17% higher compared to the same month of last year. On the other hand, a 2 Bd Townhouse cost $949,000 which is an increase of 25% compared to the previous year.
Looking at the March records, it is highly likely that home prices will continue to rise for the next few months unless new listings will be able to meet pent-up demand from an influx of buyers. The two factors that drive buyers' interest are low mortgage rates and growing confidence in the economy's recovery.
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 email@example.com