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Toronto Market Update August 2021

Toronto Market Update August 2021

It seems like these summer months are melting away right before our eyes, and after being in lockdown for so long it doesn’t really surprise us that sales have gone down this month. Let’s face it, people are more focused on getting out and making the most of summer than purchasing real estate. In the month of July there were 9,390 homes sold, which actually only puts us down by 2% when comparing it to the month of June. Last year people were home and not doing much, so more people were willing to purchase houses, but right now people are prioritizing having the most fun they can have before winter rolls around. 

Currently the average price for homes is up 12.6% compared to last year, and homes are now sitting at just over $1 million, just last year homes were sitting at about $943k on average. In July 2020 there were 11,033 homes sold, this number may also be higher because there were more homes listed. It may seem as if the housing market is becoming more stable and staying strong, but we’re not really seeing an indications that the market is cooling off. While sales are down so are the amount of listings, and buyers purchasing power is capped and people just can’t spend anymore money on housing, which is stabilizing the market at its current pricing levels. 

People want a vacation right now, not to buy homes. 

Let’s face it, last year we were all pretty bored and confined to our homes, and this led to people saving more money and having more time on their hands, which meant people had the time to look for homes and purchase them. Now people are visiting their cottages, heading to patios, and now that most people are vaccinated they’re choosing to take this time to go on all the trips they missed out on! I think for now our priorities have changed and house hunting just isn’t the first thing that many people want to do, which has contributed to the sales being low. Another thing that contributed to sales being low this month is because there just isn’t enough supply, which honestly is inevitable in Toronto, there will always be a supply issue and that’s because our population is constantly growing, and as much as it seems like there’s a new building going up everyday, there just isn’t enough! 

The Rental Market is Tightening Up! 

Let’s talk about the rental market, because I know that’s on everyone’s mind and since we’re starting to head back to the office this means more people will begin moving back into the city. Yes, average prices are not as high as they were pre-pandemic, but they are definitely in demand and we might just start seeing the pre-pandemic numbers very soon! Here at SO&Co we’re starting to see multiple offers, as well as offers going above asking, we’ve also seen cases where tenants have paid full years rent up front just to ensure they get the lease. Now that businesses are coming back, we’re beginning to see the economy open up, and now that most of us are vaccinated and going back to living that downtown life again the main question on our minds is…  will this draw more investors back into the condo market?

What does all of this mean?

Typically in real estate we see two peaks, one in the spring and one in the fall, so the question now is are we going back to the seasonal normality we all know? And when September comes around will we see any increase in listings, buyer activity, and price? This has occurred in the past, and now that we’re seeing more people returning to the city, we are expecting to see an increase in listings. 

Are you ready for the fall market, because we are!

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