Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our JANUARY 2021 Toronto real estate market report.
The 2021 Toronto real estate market has started off gangbusters with gains in some unexpected areas.
So… let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
Big numbers came in once again for January as we’re now starting off the year with record sales of 6,928 sales of houses and condos across the GTA. The next closest to this was way back in 2017 when we had 5,155 sales). Low interest rates and high demand are continuing to boost our local market.
Sales were up 52% from January 2020.
Condo townhouse and high-rise suites hit a new record with sales up by 74% year-over-year and a record 44% share of the market with 3,050 units being sold.
The January 2021 average sale price for all GTA homes came in at $967,885… a big 15.5% increase compared to one year ago. This was the 2nd highest number for any month to date.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The inventory average for the month of January compared to historical numbers was lower by 5% compared to last year at this time.
Compare that slight inventory decrease to a 52% year-over-year sales increase. That’s why we’re seeing such a big jump in appreciation.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
With our busy market… the January ratio increased dramatically to 94% to maintain a very busy seller’s market.
The days-on-market average for GTA / Toronto homes remained steady at 24 days.
Here’s a snapshot summary of the significant real estate milestones for Toronto in January 2021 as we finish the 11th month of the coronavirus pandemic.
- January sales were 52% higher than last year (6,928) – a record for January on TRREB
- The ratio of sales-to-listings remained steady at 94% in January– keeping us in very busy seller market territory
- The January average sale price came in at $967,885– 15.5% above one year ago as we head into the spring market
- The GTA real estate market overall averaged 24 days-on-market
- Detached home sales in January 2021 with a purchase price over $2,000,000 were up a big 178% (314 houses) while condo apartment sales over $2M decreased by a significant 77% (3 suites) compared to January 2020
- The CONDO share of the market jumped to a ‘highest-ever’ 44% during the month
- Downtown condo active listing numbers were still UP by a big 105% in C01 and by 137% in C08 from last year at this time but lower by 25% from December
- January year-over-year downtown condo sales were up by 123% in C01 and 108% in C08 compared to 2020
- The downtown condo days-on-market average was 34 days (C01) and 37 days (C08)
- Reversing the trend seen in the past several months, the ratio of sales-to-listings for condos downtown jumped in C01 to 64% and in C08 to 65% putting both condo districts back into busy seller market territory
- Because of the influence of much higher inventories due to lower tenant demand, lower immigration into Toronto and restrictions on Airbnb rentals, the average condo sale price declined 13% from January 2020
- Despite the doom and gloom you see in the media about the combination condo townhouse and high-rise suite market, January continued the recovery for condo sales – there may only be a short 3-4 month window to take advantage of this market
- January saw detached homes in the 905 appreciate by an average 37% while sales were up 35%. 905 condo apartment sales were up 86% while average sale prices rose by 5%
- I believe we're in for an explosive tsunami of across-the-board economic activity in the next 3-4 months as all the repressed yearning for normality is released into a flurry of activity... restaurants busy, social gatherings happening once again, new residents (students, new hires and immigrants) come into Toronto and sales activity for the real estate 'bad boys' of the pandemic (downtown condos) jumping back to pre-pandemic levels.
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