GTA Housing Demand Remains Strong in August

TORONTO, Sept. 03, 2021 (GLOBE NEWSWIRE) — The Toronto Regional Real Estate Board (TRREB) is reporting the third-best sales result on record for the month of August. While the market has taken its regular summer breather, it is clear that the demand for ownership housing remains strong. At the same time, the supply of listings is down. The result has been tighter market conditions and sustained competition between buyers, resulting in double-digit annual increases in selling prices.

Greater Toronto Area REALTORS® reported 8,596 sales through TRREB’s MLS® System in August 2021 – down by 19.9 per cent compared to the August 2020 record of 10,738. The condominium apartment market segment bucked the overall sales trend, with year-over-year growth in sales, continuing a marked resurgence in 2021. The number of new listings entered into the System was down year-over-year by 43 per cent.

“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 August 2021 MLS® Home Price Index Composite benchmark was up by 17.4 per cent year-over-year. The average selling price for all homes combined was up by 12.6 per cent year-over-year to $1,070,911. The strongest annual rates of price growth are still being experienced for low-rise home types. However, average condominium apartment price growth is now well-above inflation as well. On a seasonally adjusted basis, the average selling price continued to trend upward in August.

“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.

Summary of TRREB MLS® System Sales and Average Price August 1–31, 2021
  2021 2020
  Sales Average Price New Listings Sales Average Price New Listings
City of Toronto (“416”) 3,003 1,000,008 4,207 3,357 1,012,817 7,416
Rest of GTA (“905”) 5,593 1,108,981 6,402 7,381 923,204 11,183
GTA 8,596 1,070,911 10,609 10,738 951,219 18,599
TRREB MLS® System Sales & Average Price by Home Type August 1–31, 2021
  Sales Average Price
  416 905 Total 416 905 Total
             
Detached 694 3,010 3,704 1,674,641 1,365,973 1,423,807
Yr./Yr. % Change -36.60% -30.20% -31.50% 11.20% 25.60% 21.40%
Semi-Detached 228 522 750 1,214,624 951,629 1,031,580
Yr./Yr. % Change -32.30% -27.90% -29.30% 4.10% 21.20% 13.90%
Townhouse 328 1,181 1,509 905,520 865,196 873,961
Yr./Yr. % Change -11.80% -20.80% -19.00% 8.30% 20.20% 17.70%
Condo Apartment 1,738 806 2,544 720,832 618,997 688,568
Yr./Yr. % Change 13.20% 7.50% 11.30% 7.10% 14.50% 9.40%
August 2021 Year-Over-Year Per Cent Change in the MLS® HPI
  Composite
(All Types)
Single-Family
Detached
Single-Family
Attached
Townhouse Apartment
TRREB Total 17.37% 21.79% 20.45% 16.16% 8.09%
Halton Region 20.75% 21.55% 22.54% 14.42% 16.16%
Peel Region 18.23% 21.45% 21.23% 15.92% 8.81%
City of Toronto 9.26% 13.00% 11.02% 12.16% 6.24%
York Region 21.23% 23.20% 22.96% 17.64% 12.07%
Durham Region 31.00% 31.33% 31.68% 31.46% 20.63%
Orangeville 21.43% 21.84% 23.64% 26.95% 1.44%
South Simcoe County1 31.34% 32.38% 32.91% 20.66% 17.80%
Source: Toronto Regional Real Estate Board  
1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth

 

Year-to-Date Summary of TRREB MLS® System Sales and Average Price August 2021
  2021 2020
  Sales Average Price New Listings Sales Average Price New Listings
City of Toronto (“416”) 30,400 1,042,869 45,735 19,055 985,933 37,121
Rest of GTA (“905”) 57,614 1,089,961 80,392 38,594 875,969 64,011
GTA 88,014 1,073,696 126,127 57,649 912,316 101,132
YTD TRREB MLS® System Sales & Average Price by Home Type August 2021
  Sales Average Price
  416 905 Total 416 905 Total
             
Detached 8,059 32,306 40,365 1,693,455 1,324,393 1,398,077
Yr./Yr. % Change 40.1% 43.1% 42.5% 14.5% 29.4% 25.3%
Semi-Detached 2,787 5,366 8,153 1,279,674 927,840 1,048,110
Yr./Yr. % Change 58.9% 46.3% 50.3% 8.9% 22.5% 17.4%
Townhouse 3,361 11,988 15,349 924,499 839,635 858,218
Yr./Yr. % Change 60.6% 53.4% 54.9% 11.0% 21.1% 18.7%
Condo Apartment 16,009 7,323 23,332 702,344 595,356 668,765
Yr./Yr. % Change 71.4% 81.5% 74.4% 2.5% 12.8% 4.8%
Source: Toronto Regional Real Estate Board
Seasonally Adjusted TRREB MLS® Sales and Average Price1  
         
  Sales Month-over-Month %
Chg.
Average Price Month-over-Month %
Chg.
August ’20 10,587 11.7% $979,048 2.6%
September ’20 10,176 -3.9% $952,220 -2.7%
October ’20 9,835 -3.4% $957,134 0.5%
November ’20 9,446 -4.0% $965,864 0.9%
December ’20 11,297 19.6% $977,996 1.3%
January ’21 11,709 3.6% $1,008,673 3.1%
February ’21 12,853 9.8% $1,033,118 2.4%
March ’21 12,973 0.9% $1,088,892 5.4%
April ’21 10,740 -17.2% $1,050,710 -3.5%
May ’21 9,835 -8.4% $1,062,529 1.1%
June ’21 8,989 -8.6% $1,062,920 0.0%
July ’21 8,814 -1.9% $1,074,957 1.1%
August ’21 8,579 -2.7% $1,100,820 2.4%
Source: Toronto Regional Real Estate Board; CREA Seasonal Adjustment    
1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends.

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Genevieve Grant, Public Affairs Specialist [email protected] 416-443-8159

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