The latest real estate market numbers released by the Toronto Regional Real Estate Board (TRREB) showed a fourth straight month of price drops according to the TRREB index as the market continues to calm. But, at the same time as the overall market moderates, the condo segment has surged back to life after an extended slow period during the pandemic and sales remain high.
Throughout the Greater Toronto Area, there was a reported 9,390 sales in July 2021 – down by 14.9 per cent compared to the record-breaking 11,033 in July 2020, and down two per cent when compared to June, 2021.This follows price declines in the months of April and May.
“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth, said Kevin Crigger, TRREB president. “Of specific note is the condominium apartment market, which has seen a marked turn-around in 2021 with sales up compared to last year. First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the market place.”
Prices were up 18.1 per cent when compared to July 2020. The city of Toronto continues to lag behind surrounding regions in price growth with 10.14 percent overall growth in all categories compared to 31.53 percent price growth year-to-year in GTA-leading Durham Region.
“The annual rate of price growth has moderated since the early spring, but has remained in the double digits,” said Jason Mercer, TRREB chief market analyst. “This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022.”
TRREB echoed many industry experts calling for a big boost in real estate activity when immigration resumes in earnest at some point later this year or 2022.
“This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future,” said TRREB CEO John DiMichele.