September 2021 Toronto Real Estate Market Report
Comparing statistics from this month to last month is getting repetitive and monotonous: new listings are down (-34%), properties sold are down (-18%), days on market are down (-13%), BUT average selling price is UP 18% across the Toronto Regional Real Estate Board (TRREB).
In the City of Toronto, the average selling price came in 15% higher at $1,136,280 over 2020 and about 9% higher than last month.
The higher end of the market ($2,000,000+) saw a 40% increase in units sold over last year, and a 33% increase over last month. This increase at this level is probably a result of continued low interest rates as well as confidence going forward that Covid-19 is being managed.
Condominium apartment unit sales were up (3%) over last month, and the average selling price was also up 3% last month, but up 9% over September 2020.
September 2021 was the sixth month of declining sales, down to 9,046 from a dizzying high of 15,652 in March 2021. March’s high likely was the result of delayed sales during the 2020 Covid lockdowns. The September 2021 9,046 sales number is still very good by historical standards. In September 2019 7,825 sales were reported and that was considered a strong month. September 2018 clocked in at only 6,455 sales and September 2017 only saw 6,334 sales. Comparisons to September 2020 sales (11,033) are skewed because of the low number of sales in the Spring market due to Covid. By September, buyers were playing catch up.
Multiple bids on homes priced correctly are still with us, a product of fewer homes for sale, resulting in higher prices. Supply and demand. I would have expected the pandemic to have had a tempering effect on prices, but that has not happened. People have realised from spending time at home that they either need to downsize to smaller quarters if they are not using all of their space (empty nesters) or just the opposite, everyone is working from home and kids are under foot as well, so the desire for more indoor and outdoor space has prompted many to move to secondary cities, suburbs, or rural towns. Being able to work from home has been liberating for many. It is a very, very good time to sell. I expect the Spring 2022 market to start by February.
Well, it looks like the vacationers have returned home and are looking again. New listings are up 27% and properties sold are up 5% over last month, however, market conditions continue to be tight. The number of listings and average prices in September compared to August are very healthy and reflect a robust market, but new listings, active listings, and the number of homes sold are all down double-digits compared to a year ago. The number of sales and average prices all up double digits, except for the number of detached houses sold being -3%. That anomaly is likely a product of the lack of inventory since the average price for detached houses is up 20%. With the borders open again, immigration resuming, and consumers learning to live with Covid-19 restrictions, look for these trends to continue.