For a ninth consecutive month, the Toronto Regional Real Estate Board (TRREB) has recorded a new monthly record for real estate sales. With 15,652 sales reported through the MLS, this represents a 97% increase from last year.
Of course, March 2020 will be widely remembered as the beginning of the Covid-era in North America. With this in mind, it is interesting to compare annual sales growth for the pre-COVID period (March 1 to 14, 2020) and COVID period (March 15 to 31, 2020):
- During the first 14 days of March 2021, there were 6,504 sales reported, up 41% compared to the pre-COVID period in March 2020;
- From March 15thto the 31st, there were 9,148 sales reported. This is up 174% compared to the COVID period of March 2020, and a stark reminder of the initial impact COVID-19 had on the housing market and overall economy.
Sales were up for all major housing types. Single detached homes led the way with an annual increase of 103.5%. Of the 7,557 detached homes sold, 6,127 were in the 905 regions. Sales of semi-detached homes were up 98.5% with 1,479 sales, and townhomes rose 90.5% with 2631 sales. Condominium sales were up 91.3% with 3,821 sales.
Rising demand for ground-level housing outside the City continues to be a trend to monitor. In March, roughly 79% of all low-rise sales occurred in the 905.
Housing supply continues to be a key statistic to follow. Though New Listings rose by 57.3%, Active Listings are down 0.7% from the same period last year. At the end of the month, there were only 10,603 Active Listings, representing a 0.7-month housing supply.
Of course, if there is so little supply, how can there be record-sales? The answer is in the pace of sales absorption, also known as Days on Market. For March, the average sale took 10 days. This is down 23.1% from a year ago and 50% from March 2019. Homes are selling as fast as they come to market. And it varies with housing type and region. Single detached homes sold in 9 days on average for all of TRREB, but in only 7 days in Newmarket, 6 days in Toronto’s C01 district and 5 days in Orangeville. Semi-detached and townhomes are selling in 7 days on average. Condo-apartments are selling in 14 days, increasing the average but still transacting at a rapid pace.
These ‘seller’s market’ conditions are putting upward pressure on home prices. March’s average sales price of $1,097,565 was an increase of 21.6% year-over-year. The MLS Home Price Index (HPI) Composite Benchmark was up 16.5%.
Looking at price by category, detached homes sold for an average of $1,402,849, representing a year-over-year increase of 26.6%. The average price for semi-detached homes was $1,045,519 (+17.5%) and townhomes rose to $870,553 (+20.7%). The average price of condos was $676,052, up 2.6% from a year earlier. Worth noting, condo prices in the 905 were up 13.5% on average.
The market for real estate remains strong across the GTA. Supply is limited, competition is high, and homes are selling at quickly. If you have questions, speak with a Harvey Kalles Real Estate sales professional to get the support you’ll need to achieve your real estate goals.