Welcome to the monthly Toronto Market Report where we'll look at what's been happening in the home & condo sectors for September 2021.
As is normal for this time of year, the market starts to pick back up after everyone has enjoyed the short summer break & returned back to school/work.
While this resurgence normally means increased levels of inventory, the number of available properties for sale has stayed extremely low this September with a 34% reduction in the number of new listings compared to the same time last year.
Active listings are down almost 50% vs. September 2020 so to say that we are at a shortage of housing inventory would be a drastic understatement at this point.
Simple economics dictates that whenever their is increased demand and not enough supply to satisfy the demand, prices will rise & the case is no different here.
The average price of a property in Toronto is now $1,136,280, which works out to an 18.3% increase vs. last year.
Detached homes continue to see the most growth in terms of value with the average price rising by 19.5% in Toronto while sales decreased by almost 23%.
Semi-detached properties also performed very well with a 14% increase in average price but this sector also saw a 23% decline in the number of sales which indicates a shortage of inventory.
Townhouses saw the most moderate reduction in sales of only 8.8% while still experiencing a 7.2% increase in the average sale price.
The only sector that saw an increase in the number of sales were condos which have been exploding in popularity as more people return to downtown living in light of loosening COVID19 restrictions.
In September, the average price of a condo rose by 8.5% while the number of sales skyrocketed by 16% compared to the same period last year.
Stats
Here's the stat breakdown for September 2021 in the City of Toronto
- Sales | 9046 (-18% vs. 2020)
- New Listings | 13,483 (-34% vs. 2020)
- Active Listings |9191 (-49.4% vs. 2020)
- Average price | $1,136,280 (+18.3% vs. 2020)
- Detached | Average price = $1,778,928 (+19.5%) | Sales = 895 (-22.6%)
- Semi-Detached | Average price = $1,304,504 (+13.9%) | Sales = 325 (-22.8%)
- Townhouse | Average price = $930,056 (+7.2%) | Sales = 365 (-8.8%)
- Condo | Average price = $744,730 (+8.5%) | Sales = 1792 (+16%)
Summary
The rest of 2021 will be very intriguing to watch as there is no foreseeable solution to the shortage of inventory we are experiencing in the detached/semi-detached sectors which should prompt continued upwards pressure on pricing.
Condos on the other hand could be starting to see more inventory on the horizon as many of the new construction buildings currently underway are scheduled for completion at the end of 2021/early 2022, however this may only relieve some of the pent-up demand.
Could we be heading back to red-hot market conditions more similar to 2019?
Check back next month to find out!
Rylie C.
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