Toronto’s Real Estate Market On The Rise Amidst The Pandemic
Posted On July 23, 2021
In the current trends of the real estate market, it is safe to assume that Toronto is the major hotspot for Canada’s most active real estate listings. When backed by factual data from the Housing market survey for April 2021, this assumption clearly explains why so many people are looking to invest in Real estate in Toronto. According to the survey, current Toronto housing statistics show an average house price of $1,109,036 with 7,267 new listings in the last 28 days. As of 6th April 2021, With 15,652 homes sold in March, Toronto’s home sales set a new peak for the month, representing a 95 percent rise over March 2020. But what do these numbers entail? Let’s find out the factors behind the sustainability of the housing market in Toronto, Canada.
Factors affecting increased demand of houses in Toronto
The Toronto Regional Real Estate Board’s chief industry economist, Jason Mercer, joins BNN Bloomberg to analyze Toronto’s most recent housing results. “It’s a continuation of the trend that we saw unfold in the second half of 2020”, says Jason Mercer as he proceeds to explain the reason for the gradual rise in the price of houses in Toronto in the recent flow of events –
“The low-interest rates and diminished cost of borrowing are key.” This has certainly improved the affordability of houses in Toronto and is the crucial reason for the market’s sustainability as you move forward. A large number of house buyers are working in sectors that were able to make that swift move from the bricks-and-mortar office to home offices. So, people are confident over the ability to afford and pay for a home in Toronto over the long term.
The sustainability of the housing market also depends on population growth. Real estate in Toronto has undoubtedly benefitted from the immigration policy in the greater Toronto area. Since GTA will be the single greatest beneficiary of this activity, there will surely be more housing demand in Toronto.
Jason Mercer also mentions that the work from home trend has fueled sales activity in the hottest housing markets in Toronto.
Houses in Toronto: Price updates and the increasing house sales in Toronto
Given the recent flow of trends, Houses in Toronto are in increased demand, and the prices are rising to complement this housing need. John Pasalis, a real estate analyst, discusses the hot housing market and the purchasing spree that drove the average house price beyond the million-dollar mark in March.
John explains, “As lockdown ended in June, buyers rushed back into the market. Since then, House prices in Toronto have accelerated beyond 15 to 20% per year. This has fueled even more buyers to seek houses in Toronto. Therefore, it is a hot market right now.”
Additionally, the idea to move into the outer suburbs and county regions of Canada has resulted in everyone wanting to buy a house in these regions of Toronto. This suggests that the market is really competitive at this point. The demographic includes that house prices in Toronto have significantly risen, and such an increase has made it difficult for first-time buyers to move to the hotspot. Since house sales in these outskirts are booming right now, it is advised to act swiftly if you are one of the potential or first-time house buyers in Toronto, Canada.
According to the Royal LePage House Price Survey published on 13th April 2021, the aggregate price of a house in Toronto rose 14.1% year on year to $749,165 in the first quarter of 2021, as high demand continues to outpace supply in virtually every sector across the world. “2020 was a year like no other in Canadian real estate, with its unprecedented demand for homes, and month after month of record-setting sales and price appreciation,” says Phil Soper, president and CEO of Royal LePage. He continues, “The usual winter slowdown was non-existent, and that momentum was carried forward through the first quarter of 2021.” Accordingly, the Royal LePage predicts that the aggregate house in Toronto price will increase 13.5 percent to $805,000 in the fourth quarter of 2021, compared to the same quarter last year.
In terms of house prices, purchasing activity has reached new highs as homeowners rush to secure homes before mortgage rates rise. Year on year, sales of detached and semi-detached homes rose by 102 percent and 97 percent, respectively. Condo sales are now almost double last year’s rate, with a 90 percent growth from March 2020.
With a similar flow of trends in the near future, the aggregate price of a home in the Greater Toronto Area is expected to increase 11.0 percent in the fourth quarter of 2021. So if you’re looking to secure a house in Toronto, hurry and book the most affordable property before it’s too late!