With the market having had experienced a few slower months in the spring last year due to the pandemic, many believed that it would take the real estate market longer to recover, but as soon as COVID-19 measures started to loosen, homebuyers and sellers returned to the market, and the market quickly recuperated by the end of 2020. At the beginning of 2021, sales in Toronto and the GTA were again record-high, which also led to significant price increases in most GTA areas, especially when we look at the detached and family homes. With the first quarter 2021 almost over, the GTA real estate market is still climbing in price and sales. Here is how it currently looks:

Toronto average home price climbed to over $1 million for the first time

Looking at the TRREB data, we can see that the average home price in Toronto's housing market is over $1 million currently. The price increased by 14% compared to last year, and the main reason is the high demand in Toronto's suburban areas.

Many GTA homebuyers try to take advantage of the still-low mortgage interest rates and mortgage packages to get a beautiful detached home in the nice, slightly isolated neighbourhoods in and around Toronto. 

Homebuyers are fiercly competing to enter the market, while sellers are again enjoying a favourable position. Toronto's long-term issue with the usually lower inventory and high demand is again at its peak. The number of sales also jumped by over 50% when compared to February last year-which was also a record month in itself right before the pandemic hit.

Prices also increased in the surrounding areas

While many GTA homebuyers still feel they cannot afford a home in Toronto or compete for it with 20-30 other homebuyers, we see many of them turning to the surrounding areas like Hamilton, Halton or Durham. In the latter two, home prices are also up by 20% since last year, but they are still more affordable than low-rise homes in Toronto. 

The Downtown Toronto condo prices are still lower than they were

The Toronto condo market dropped in price a few months ago, and it is still not back to where it was, but Downtown Toronto will probably see an increase in condo prices as soon as the pandemic declines. With the vaccination slowly moving forward, the GTA is expected to see an increase in population again as restrictions will be further lifted allowing all businesses to operate again, allowing international students to return to university life in person, letting in tourists, etc., and all of that will spur demand, especially in the condo market. If you were looking to buy a Toronto condo, now might be a good time, while prices and competition are still more moderate than what we usually see in the Toronto condo market.

If you are looking to buy or sell a home in the GTA currently or would like to find out more about the market conditions and the buying or selling process, contact Amanda Hayashi here. Amanda is ready to help you set up the best strategy to get the most out of your purchase or sale, as well as to answer any real estate-related questions you may have.