Toronto home sales double after March pandemic, average price rises to $ 1.1 million

Toronto home sales double after March pandemic, average price rises to $ 1.1 million

Home prices in the Toronto area continued to climb in March, while sales were almost double those of the same month a year earlier, when the rapid spread of COVID-19 led to widespread economic shutdowns, the Toronto Regional Real Estate Board (TRREB) reported on Tuesday. .

Sales in the region hit a record 15,652 last month, up 97% from 7,945 in the same period last year.

The sales growth has been so spectacular as it compares to March 2020, when the first economic effects of the pandemic were evident and buyers and sellers were wary of the market.

These fears have long since dissipated. Realtors and real estate agencies have reported a surge in sales – exceeding many of their most optimistic forecasts – since the start of the year.

Sales growth exploded

They say the number of people willing to buy now will likely make up for more than the lows of last year.

“Confidence in the economic recovery coupled with low borrowing costs sustained a record pace of home sales last month,” TRREB President Lisa Patel said in a statement.

In the first 14 days of March, there were 6,504 sales this year, up 41% from the number of sales during this period last year.

There were 9,148 sales reported between March 15 and March 31, 2021, an increase of 174% from the COVID period of March 2020.

Dividing the month in half is significant: The first half of March 2020 seemed relatively average, but restrictions adopted after the World Health Organization declared the pandemic on March 11 quickly caused home sales to plummet.

A year later, the available inventory has not caught up with the number of people looking for new accommodation, which has put pressure on prices.

Lack of inventory

“While robust market activity indicates widespread consumer optimism, it also highlights the continuing lack of inventory in the housing market in the Greater Toronto Area, with implications for affordability,” he said. she declared.

The average home price in the area jumped 21.6% to $ 1,097,565 from $ 902,787 last year, while listings climbed about 57% to 22,709 from 14,434.

The most dramatic price increases were seen in single-detached homes, where the average price rose 26.6% to $ 1,402,849.

The average semi-detached home sold for $ 1,045,519, an increase of 17.5%, while townhouses climbed 20.7% to $ 870,553.

Condominiums experienced the weakest price growth. The average price of condos climbed 2.6% to $ 676,052.

“With sales growth far exceeding listing growth, including in the condominium market segment, competition among buyers in certain market segments and the potential for double-digit price growth could continue without a significant increase in price. the supply of available-for-sale housing, ”said Jason Mercer, chief market analyst for TRREB in a statement.

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