In the past month, even though the average Toronto home price was up 12.6%, the sales volume was down. What does that mean to the Toronto real estate market?
Before we go further into the article, I can tell you that this market is looking very healthy. Let’s dig into the numbers and then I’ll tell you my take of this Toronto’s real estate tale!
During the COVID-19 Pandemic many were fearful that the housing market in Toronto might crash! Even CMHC had predictions of a crash, but Toronto’s real estate market not only didn’t crash ( it slowed down in some areas though) , it got back it’s momentum after a few months of downturn.
Real Estate has been a historically safe asset (for the most part though, depending on the location and some other factors which are far beyond this article but I’ll be happy to explain to my audience in one on one consultations).
You also can view my past predictions, which are very close to what is happening right now: Toronto Real Estate Market .
The Micro analysis of Toronto’s housing market is based on both the macro data and daily transactions that we have as Toronto real estate agents. Our approach to real estate market analysis has made our market report one of the most complete sources for Toronto’s real estate market news for both end users and Toronto real estate agents.
Toronto Home Prices are up 12.6% and Sales down 14.9% Y/Y, Why?
You might remember the below quote from a couple month ago in my Toronto real estate market update:
“ I expect a slowdown in the next few months into the summer. So if you are a buyer trying to secure a place don’t be worried. I think you can have a little bit of opportunity in the next few months, but that window of opportunity might not last long. “
Even though the number of transactions fell down, the level of inventory has not changed much. That’s because the number of active listings in Toronto also has dropped by 35%. The month of inventory in Toronto ( MoI ) has been 1 MoI, just so you know 1 MoI is considered a sellers market!
Let’s look at Toronto’s Housing Trend in the past several months, from when the Pandemic Lockdowns Started.
For more insight about the Detached Home market and or Condo apartment market in Toronto view the below.
What will happen to the Toronto real estate market in the near future:
A lot of buyers that we are helping in Toronto’s real estate market on a daily basis are End users. Those who actually need a roof over their heads, and they’re NOT looking to flip or speculate.
On the other hand, the rental market started to move, and we see competition on our rental listings. That mainly is happening because people are coming back to Toronto, professionals, students, new immigrants, they are coming back and are looking for a place to live.
The importance of a strong rental market is that a strong Toronto rental market would attract investors. Thus I predict that the investors also will be adding to the buyers pool. This will be in addition to the current demand, and in the next 6 – 8 month most likely can create another major uptick in prices.
If you have read my previous contents you already know when’s the best time to buy a home in Toronto. You can see that Toronto’s seasonal markets are usually slower in June, July and Aug. So in this year we’ll most probably see that pattern happening again too.
With all that being said I see Toronto’s real estate market would be moving at a slower pace for the next few months unless something major changes in the Canadian economy! So I strongly recommend that you set a strategy with your Toronto real estate agent, if you are planning to buy or sell any time soon!
Toronto Home Prices’ Annual Trend!
As mentioned, July 2021 has recorded an average sale price of $1,062,256 . You can view the annual trend for the past 5 years down below!
Toronto’s Condo Market (Condo prices up 6% YoY) :
Toronto’s condo market’s inventory level is 1.5 MoI at the moment which is a sellers market if we look at it in general.
Toronto’s Downtown Condo Market:
Downtown Toronto’s Month of inventory is 1.6 MoI, which is UP from last month’s 1.5 MOI and it is a small relief for condo buyers downtown! Average downtown Toronto condo prices interestingly went up to $760K.
I highly recommend contacting a knowledgeable downtown Toronto REALTOR if you are looking to make a move here.
Toronto’s Detached Houses (Prices are UP 21.7% !) :
Detached is still going Strong!
Toronto REALTORs? sold 5,718 detached houses through TREB this past month. The average price of a Detached house in Toronto’s $1,405,478. This is a 21.7% increase in Detached Home prices in Toronto.
FYI the Average Detached Home Price in the City of Toronto is $1,633,649!
Month of inventory is a good indicator that shows the OVERALL supply/demand situation in each area. MOI has been 1.0 for detached homes in Toronto’s housing market. This means the Detached Market has been a Seller market the whole time since May 2020!
Semi-detached Prices are Up 12.2% and Townhouse Prices are Up 15.9% YoY:
In the Semi-Detached homes market in Toronto we had a competitive market. Basically Semis were the property types that had very high gains in the past year in Toronto! One of the reasons is that they are usually in the mid-high end of the freehold market!
The average price of a Townhouse in Toronto has been $849,950 and the average price of a semi-detached house in Toronto has been $1,027,895! For more detailed info about these property classes and their respective markets, you can contact us!
*info from TRREB