The desire for homeownership in the Toronto region stayed strong during July, but home sales took a hit compared to the record-breaking levels recorded during the same month in 2020.
New data published by the Toronto Regional Real Estate Board (TRREB) today reports that 9,390 sales took place during July within the Greater Toronto Area. This is a 14.9 percent drop from July 2020, when 11,033 properties changed hands and a new record was set for the month. On a seasonally-adjusted basis, sales declined by two percent from June.
Although sales did not surpass the July 2020 record, TRREB noted that market conditions tightened last month relative to the previous year, as sales accounted for a greater share of new listings. Last year, 18,119 new listings entered the market, higher than the 12,551 new homes that came online during July 2021.
TRREB’s president, Kevin Crigger, explained in the news release accompanying July’s market data that demand for housing has remained strong despite the 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,” said Crigger. “First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the marketplace.”
The GTA’s detached segment accounted for the majority of sales last month, with 4,121 homes bought and sold. However, this was a 26.4 percent drop from the same month in the previous year. Sales for condo apartments increased in both the ‘416’ and ‘905’ regions, climbing by 4.2 percent and 17.2 percent annually, for a total sales increase of 8.2 percent across the GTA in July.
Compared to July 2020, the MLS Home Price Index Composite Benchmark rose by 18.1 percent last month. For all property types, the average home price was $1,062,256 in July, up 12.6 percent year-over-year and 0.9 percent from June.
The detached segment of the market led the way in terms of price growth, rising by 21.7 percent annually across the GTA to $1,405,478. Detached homes in the ‘905’ suburban areas of the region experienced the greatest price increase in July, surging by 27 percent year-over-year to $1,346,186. The average price of a condo apartment in the GTA also jumped six percent to $674,490. However, the steepest price hike for this property type was seen in the ‘905,’ where prices rose 11.7 percent to $589,582.
“The annual rate of price growth has moderated since the early spring, but has remained in the double digits,” said TRREB’s Chief Market Analyst, Jason Mercer, in the news release.
“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,” he added.
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