An insight into the post-pandemic real estate market in GTA
Sunday, October 31, 2021
Realtors from GTA reported 9,046 real estate transactions through TRREB’s MLS System in the month of September 2021. In comparison to last year, real estate market conditions remained strict, with sales representing a greater portion of listings, and a significantly low inventory of new listings. One factor that played crucial part in higher number of listings sold was the re-emergence of condo sales. The total number of sales was down 18 percent from 2020’s ground breaking September pertaining to the reduced number of new listings, which were down 34 percent from around the same time last year.
Has demand for real estate cooled down?
Demand for real estate has remained incredibly robust throughout September with many qualified buyers ready to buy a home as early as tomorrow, if they find their dream home. With new listings in September down by one third compared to last year and prices rising, purchasing a home has become difficult. The lack of listings and limiting choice has reached a critical juncture. Policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone.” said Kevin Crigger, TRREB President. online and do not hesitate to meet with multiple realtors before deciding on one, after all it is one of the biggest investment decisions in your life.
What is happening with the price?
The MLS Home Price Index Benchmark was up by 19.1 percent compared to September 2021. The average selling price for all home types combined was up by 18.3 percent to $1,136,280 from last year. Although the increase in price has slowed down but it is unlikely prices will drop. The market will continue to appreciate.
“Price growth in September continued to be driven by the low-rise market segments, including detached, semi-detached houses and townhouses. However, competition between buyers for condo apartments has picked up markedly over the past year, which has led to an increase in price growth over the past months as first-time buyers re-entered the homeownership market. ” said Jason Mercer, TRREB Chief Market Analyst.
What is the condition of the pre-construction market?
The pre-construction market is going well with many upcoming projects happening all over GTA, including Toronto and outside Toronto in places such as Barrie, Lindsay, Kleinburg and others. Pre-construct market will likely remain strong as it offers affordability to first time buyers. There is also a niche for luxury preconstruction projects that offer residents a plethora of hotel-like amenities including swimming pool, party room, rooftop patio, gym, theatre, pet-spa and so on for an elevating lifestyle along with luxury features, such as high ceilings, solarium, granite countertops, stainless steel appliances, etc.
Is Canada heading towards a post-pandemic real estate bubble?
Like everything, it is a matter of supply and demand. With or without covid-19 the demand for housing has never gone down. As long as interest rates remain low and with the current state of low inventory, there is enough reason for real estate prices to continue rising. People are still buying. As we enter a new normal with travel restrictions relaxing, more people from other countries are likely to enter the market and demand for housing will stay persistently strong. In short, Toronto will likely to remain unaffordable in the near future and prices of small towns and suburbs will also continue to go up. For those who are holding off their home purchase, thinking real estate price will go down, may get a reality check as it is highly unlikely. Your house is your most valuable asset. If you or someone you know is looking to buy a home, please feel free to contact us and we will be happy to guide you and fulfill your real estate dream.