JANUARY 2021 STATS
Toronto and GTA housing market currently has two months of inventory.
Housing supply levels continue to decline and are not expected to improve in 2021, which may push average home prices up.
January 2021 home sales amounted to 6,928 up by more than 50 percent compared to January 2020. This strong start to 2021 included sales growth across all major segments including condominium apartments, both in the City of Toronto and surrounding GTA regions like Oakville and Milton.
New listings were also up on a year-over-year basis in January, but not by the same annual rate as sales. This means market conditions tightened compared to January 2020, resulting in the continuation of double-digit growth in the MLS home price index and the average selling price.
The average selling price for January 2021 was up by 15.9 percent to $967,885 year-over-year. HPI Composite Benchmark was up by 11.6 percent over the same period.
Price growth was driven by the low-rise market segments, while the average condo apartment price was down in Toronto. However, if we continue to see condo sales growth outstrip condo listings growth, we could start to see renewed growth in condo prices later this year.
The Toronto and GTA housing market has experienced shifts in buyer demand prompted by economic factors, lifestyle changes, and immigration in the wake of COVID-19. Toronto’s condo market is currently a buyer’s market, whereas the rest of the market favors sellers.
Given that remote work is a widely available option, many Toronto buyers have been choosing homes based on affordability, often outside of the city, versus being close to their place of work within the core. This migration outside of urban areas has been a common trend across many Canadian housing markets as well as regions abroad, as home-buyers seek more square footage and green space, and less density.
In 2021, the immigrant home buyer is expected to drive market activity, which includes those coming to Toronto for education purposes, along with the expected influx of immigration from outside the country. Given this trend, condominiums will likely see the most activity in 2021, based on their affordability, particularly for first-time home-buyers.
Outside of the downtown core like Oakville, Milton, the condominium market has been relatively balanced since the start of COVID-19, based on buyers looking for more space while still being mindful of budget. Toronto’s luxury housing market remains largely unimpacted by COVID-19 and is driven by move-up buyers.
Adnan Mian | Realtor ® mian@adnans.ca | (647) 545 1174
