The annual rate of price growth has tempered since the the Spring, but still remains in the double digits. Given the most household are still having to compete very hard to reach a deal and secure a home, the strong upward pressure on home prices will be sustained in the absence of more supply. This is especially true now that they are predicting a resurgence in population growth throughout 2022.
Here’s the Toronto Regional Real Estate Board’s analysis for July 2021 – along with the updated forecast – with graphics courtesy of Market Watch:
TORONTO, ONTARIO, Aug. 6, 2021 – With almost 9,400 sales reported in July 2021, demand for ownership housing remained well-above average for the time of year despite being below the record July result set a year earlier. Market conditions actually tightened relative to July 2020, with sales accounting for a greater share of new listings compared to last year. The sellers’ market conditions sustained adouble-digit annual rate of price growth.
“Demand for ownership housing has remained strong despite a pandemic-related lull in population growth. 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,” said TRREB President Kevin Crigger.
Greater Toronto Area REALTORS® reported 9,390 sales through TRREB’s MLS® System in July 2021– down by 14.9 per cent compared to July 2020 result of 11,033. On a seasonally adjusted basis, July sales were down by two per cent compared to June.
The MLS® Home Price Index Composite Benchmark was up by 18.1 per cent compared to July 2020. The average price for all home types combined was $1,062,256 – up 12.6 per cent compared to July 2020. The detached market segment led the way in terms of price growth, driven by sales in the suburban regions surrounding Toronto. On a seasonally adjusted basis, the average price was up by 0.9 per cent compared to June.
“The annual rate of price growth has moderated since the early spring, but has remained in the doubledigits. 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 aswe see a resurgence in population growth moving into 2022,” said TRREB Chief Market Analyst JasonMercer.
“There is a huge backlog of people seeking citizenship or permanent resident status in Canada. A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future. Policy makers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in majormetropolitan areas,” said TRREB CEO John DiMichele.
If you’d like to see more in-depth figures – by housing type and/or geographical area – here’s the complete set of July 2021 TRREB Stats.
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