The largest housing market in Canada appears to be off to a strong start in 2021, as home sales in the Greater Toronto Area (GTA) soared by 52.4% in January, largely due to a resurgence in interest in the condo market.
According to latest data published by the Toronto Regional Real Estate Board (TRREB), a total of 6,928 homes in the GTA traded owners in January, causing the average selling price to surge by 15.5% to $967,885. Although the condo market benefited from an increase of 85.5% in sales activity compared to year-ago levels, the segment still continues to suffer from some level of price weakness. The month of January saw the average selling price for a condo fall by 4.7%; however, TRREB did note that the sales growth in the category has been exceeding listings growth, suggesting that a price rebound could occur if conditions continue.
In comparison, the demand for detached homes does not appear to be slowing down in the new year, as sales volumes jumped by 34.4%, and average selling prices increased by 31.2% on a year-over-year basis in January. The market for detached homes has proven to be significantly resilient throughout the pandemic, as Canadians in heavily-populated urban region relocated to more spacious housing in nearby suburban and rural locations.
Despite 2020 being a rough year for Canada’s economy, TRREB anticipates that the momentum in the GTA real estate market will continue onward for the foreseeable future. According to TRREB Chief Market Analyst Jason Mercer, Canada’s economic revival following mass vaccinations, coupled with positive demographic trends will likely cause prices to continue increasing.
Information for this briefing was found via TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.