For the month of August, the Toronto Regional Real Estate Board (TRREB) reported the third-best sales performance on record. While the market has taken a break for the summer, it is apparent that demand for home ownership remains robust. At the same time, the number of listings available is decreasing. As a result, market conditions have tightened and buyer rivalry has increased, resulting in double-digit annual rises in selling prices.
In August 2021, Greater Toronto Area REALTORS® reported 8,596 sales through TRREB’s MLS® System, down 19.9% from the previous high of 10,738 in August 2020. With year-over-year growth, the condominium apartment market segment defied the overall sales trend. With year-over-year sales gains, the condominium apartment market segment defied the overall sales trend in 2021, continuing a notable rebound. The amount of new listings entered into the System fell by 43% year over year.
“The fact that new listings were at the lowest level for the past decade is alarming. It is clear that the supply of homes is not keeping pace with demand, and this situation will become worse once immigration into Canada resumes. The federal parties vying for office in the upcoming federal election have all made housing supply and affordability a focal point. Working with provincial and municipal levels of government on solving supply-related issues is much more important to affordability than interfering with consumer choice during the home buying and selling offer process or revisiting demand-side policies that will at best have a short-term impact on market conditions,” said TRREB President Kevin Crigger.
The MLS® Home Price Index Composite benchmark for August 2021 was up 17.4% year over year. The average selling price for all properties was $1,070,911, up 12.6% over the previous year. Low-rise housing types continue to suffer the highest annual rates of price growth. The average price growth of condominium apartments, on the other hand, is now considerably above inflation. In August, the average selling price continued to rise on a seasonally adjusted basis.
“Sales have accounted for a much higher share of new listings this year compared to last, and the story was no different in August. There has been no relief on the supply side for home buyers, in fact, competition between these buyers have increased. As we move toward 2022, expect market conditions to become tighter as population growth in the GTA starts to trend back to pre-COVID levels,” said TRREB Chief Market Analyst Jason Mercer.
“With a federal election just weeks away, we are calling on all political parties to continue focusing on housing policies that address supply and affordability across the country. Bold action, not promises, are needed to ensure that Canada has a stable and sustainable housing market now and in the decades to come. This will ensure that the Greater Golden Horseshoe remains competitive on the global stage, in terms of attracting businesses and households to the region,” said TRREB CEO John DiMichele.
