Toronto Market Report | October 2021
The saga of low supply & high demand continues for the Toronto real estate market with October seeing near recording-breaking levels of home sales.
The saga of low supply & high demand continues for the Toronto real estate market with October seeing near recording-breaking levels of home sales.
Lack of inventory will continue to be a problem until early next year when we should start seeing some relief when many of the new condos that are currently under construction start occupancy.
Historically we have seen a knock-on effect when these new construction condos are completed with more inventory becoming available in the resale condo market.
This happens as a result of many investors & unit owners moving into these new buildings which they likely bought when the development was first released.
Adding this inventory into the condo market provides more options to those looking to downsize from their detached/semi-detached homes (which we are increasingly seeing).
Ultimately this provides more housing inventory which should help bring some relief to certain neighbourhoods, even if it is just for a short period of time.
Townhouses performed the best in October with 23.5% appreciation vs. 2020 with the average price now reaching over $1 million ($1,025,257 to exact).
While this may come as a surprise to some people, it actually makes complete sense when you look at the requirements of many buyers in a post-COVID world.
Many people want more interior space, a home-like feel, preferably easy access with no elevators plus some private outdoor space & a more central location.
This matches exactly to what townhouses provide & this is why we'll likely continue to see growth in this sector in the coming years.
Stats
Here's the stat breakdown for September 2021 in the City of Toronto
- Sales | 9783 (-6.9% vs. 2020)
- New Listings | 11,740 (-34.1% vs. 2020)
- Active Listings | 7750 (-55.2% vs. 2020)
- Average price | $1,155,345 (+19.3% vs. 2020)
- Detached | Average price = $1,784,979 (+21.2%) | Sales = 1061 (-13.1%)
- Semi-Detached | Average price = $1,322,229 (+14.4%) | Sales = 367 (-11.1%)
- Townhouse | Average price = $1,025,257 (+23.5%) | Sales = 428 (+5.4%)
- Condo | Average price = $739,647 (+10.6%) | Sales = 1913 (+33.7%)
Detached & semi-detached properties are still experiencing strong growth with 21.2% and 14.4% appreciation respectively.
The condo market has come back with a resurgence after a major drop off in demand which started at the beginning of the pandemic.
With many people returning to work & "normal" life starting to resume again, the demand for restaurants, cafes, nightlife, etc. has spurred back life into the Downtown core and the surrounding condo buildings.
On top of this, the rental market has tightened back up with increasing competition & lower inventory which is causing investors to see it as a viable option again.
Summary
As I say every month, it will be interesting to see what the future holds for the Toronto real estate market but it looks like we're in for more of the same in the coming months.
What do you think is going to happen with the market?
Let me know in the comments section below!
Rylie C.