Toronto Real Estate Market: Do you know the Affordable Option for First Time Home Buyers and Investors?October 11, 2021
The average price for a detached home in the Toronto real estate market is higher than it’s ever been.
According to the Toronto Regional Real Estate Board (TRREB), the average selling price for a detached home in the 416 area reached a record-high $1,778,928 this past September, which is a 19.5 percent year-over-year increase and a six per cent jump from the month prior.
The average selling price for a semi-detached home in the 416 rose seven percent since August to $1,304,504, which is a 13.9 percent year-over-year increase but below the record high of $1,326,153 in May.
TRREB suggests that and the higher prices for detached and semi-detached homes is the result of a lack of supply. New listings were down 34 percent from this time last year.
“Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property,” says TRREB president Kevin Crigger in a statement.
He followed that up by once again dismissing any alternative solutions to cooling sky-high prices that don’t involve building more.
“The lack of housing supply and choice has reached a critical juncture. Band-Aid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution.”
Toronto Condo Market Strong Option for Buyers
Second-quarter 2021 GTA condominium apartment sales were up substantially compared to Q2 2020, but ebbed slightly compared to Q1 2021, following the broader market trend. Competition between buyers continued to accelerate compared to last year, which led to year-over-year and quarter-over-quarter average price increases. Greater Toronto Area REALTORS® reported 8,793 condominium apartment sales in the GTA in Q2 2021 – up by 155 per cent compared to Q2 2020, but down by approximately six per cent compared to Q1 2021, following the broad-based slowdown in home sales since March.
“There is no doubt that the condominium apartment segment has improved markedly over the past six months, after lagging the low-rise market segments in the second half of 2020. Consumer polling conducted by Ipsos for TRREB suggested that about 40 per cent of buyers in 2021 would be first-time buyers.
For many first-time buyers, their entry point into homeownership is the condo market so we expect further upward movement this year with accelerated migration back to cities and heightened immigration,” said TRREB President Kevin Crigger. The average condo apartment selling price was up by 10.8 per cent year-over-year in Q2 2021 to $686,312.
This also represented more than a six per cent increase compared to Q1 2021. In the City of Toronto, which accounted for close to 70 per cent of Q2 condo transactions, the average selling price was $721,109 – up by nine per cent compared to Q2 2020.
“The second quarter marked a turnaround for the condo market in terms of price growth. Whereas other market segments experienced a resurgence in price growth in the latter half of 2020, the condo market took longer to recover. Looking forward to 2022, condo demand could very well strengthen as immigration picks up and younger people, more impacted by COVID-19, look to purchase a home,” said TRREB Chief Market Analyst Jason Mercer.
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