January 2021 Toronto Real Estate Market Report
The Spring market has started. Or did the fall market never end? Just last month we were extolling the lofty numbers of December’s real estate sales and in January the number of sales is up, average prices are up, condo sales are up, and offers are flying in 17% faster. The number of properties sold in January 2021 was 9,430 up 20% over January 2020’s number of 7,836 and 61% higher than December 2020. Days on Market (DOM) has also decreased from 29 to 24 days. Despite the snow on the ground, these numbers are typical of an early Spring market.
Prices were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions, with the exception of condominiums. A repeat of last month. In December the average sale price for all properties sold in the greater Toronto area came in at $967,885, about 4% higher than December’s average price of $932,004 and a healthy 15% higher than January 2020’s average price of $839,363.
In the City of Toronto, the average sale price came in a bit lower at $866,331 which represents a -3.2 change over last month and a -10.5% difference from the Toronto Real Estate Board’s overall numbers. Anecdotally, we have heard that many are choosing to buy in the suburbs where their money buys more square footage, larger gardens, and closer proximity to green space and now the numbers seem to support that. Both Halton and York region’s average sale prices were 20% higher than Toronto, with only Durham being -9% lower.
It is also worth noting that the higher end of the marketplace continued to be robust, as well.
In January, 331 properties having a sale price of $2 million or more were sold, only 3 of which were condominiums. By comparison, only 130 properties in this category were reported sold last year (14 were condos), an impressive increase of 55%. This confidence in higher-end homes shows stability and bodes well for the near future.
In December condominium sales were up 73.8% compared to last year. January added to that trend: condominium sales were up 85% over January a year ago. Despite the fact that the average selling price of condos is down (-8%) year over year, this indicates that condos are in demand again. I have found that with my own clients. I have a few clients who are trying to buy in the 905 area. Multiple offers, bully offers, and sale prices tens of thousands of dollars over list price is the norm. Just getting in see a place is sometimes impossible before the unit is sold.
The number of condos sold in the City of Toronto in January was 2,471 and the average price was $624,886.
The strong January market is not really a surprise. Interest rates are still low, the stock market is on fire, and there is pent-up demand, in spite of new listings being up 20%. Working from home has made many realise that they need more space with both parents needing home office space and the children homeschooling as well. Nesting at home will be with us for a while.
– Chip Barkel, Sales Representative, eXp Realty. Extraordinary Service. Top Results.