February 2021 Toronto Real Estate Market Report
Is this February or July? Last month I reported that the Spring market had already started, and the real estate train is still flying down the track. The number of properties sold in the Greater Toronto Area last month was just under 11,000 (10,970), a number we didn’t reach until July of last year. That is a 51% increase in sales over February 2020. You may be thinking that 2020 was an anomaly because of the Covid-19 shutdowns and you are right. From mid-March until June 1st real estate showings and sales had dropped dramatically, BUT that 11,000 figure we saw in July 2020 and again last month is a number that was not reached in 2019 or 2018. And demand is still outstripping inventory. That increase in demand is also reflected in the average sales price which is now for the first time ever over $1million ($1,045,488), a 15% increase year-over-year.
New listings are up 43% (15,137) and the number of Days on Market (DOM) is down 18% to 14 from 18 a year ago. These statistics show that we are in a very active Sellers’ market, especially considering that Canada’s border is closed to immigration.
Prices were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions, except for condominiums, a trend we have seen for many months. In fact, the numbers for the surrounding 905 regions are even higher than in the City of Toronto.
In the City of Toronto, the average sale price came in a bit lower at $995,201 which represents a +15% change over last year. Both Halton and York region’s average sale prices were 15% higher than Toronto, with only Durham being -15% lower.
It is also worth noting that the higher end of the marketplace continued to be robust, as well.
In February, 597 properties having a sale price of $2 million or more were sold, only 18 of which were condominium apartments. By comparison, only 266 properties in this category were reported sold last year (12 were condo apartments), a whopping increase of 125%. When compared to two years ago, the difference is even more striking: a 406% increase. This illustrates something we already know, prices are rising dramatically and confidence remains high across the price spectrum.
In January condominium sales were up 85% compared to last year. February’s condominium sales did not fare quite so well, but the number of units sold was still up 63% over February a year ago. Despite the fact that the average selling price of condos is down (-6.4%) year over year ($676,837), buyers are once again embracing condominiums. The price ratio of detached homes is usually about 2.0x greater than condos. Lately, that ratio has increased to 2.5x, so condos are seen as a more affordable option.
I am going on record now that I think 2021 will be the best year ever for the number of sales for the Toronto Regional Real Estate Board (TRREB).
In both January and February, sales were up 53% and I do not see that changing. If you are thinking of selling, 2021 should be your year.
Chip Barkel, Sales Representative, eXp Realty. Senior Real Estate Specialist & Advisor.