TRREB‘s home sales report for July 2021 painted a different picture from the popular belief that property prices were stalling, or even going down. It showed shrinking inventory and fewer overall sales, but it also showed sale prices still trending up. Here is what the numbers meant for buyers and sellers across the GTA.
This post was first published in the summer of 2021. The figures below are from TRREB’s July 2021 report.
Home sales and prices in July 2021
The Toronto Region Real Estate Board (TRREB) reported that total house sales were down by 14.9% compared with the same month last year. There were also 2% fewer sales than in the month before.
Even so, the year-over-year price, comparing the same months, went up by 12.9%. The sale price also kept rising by 0.9% compared with the previous month, June 2021.
In other words, fewer homes changed hands, yet each one sold for more. That pattern usually points to a shortage of supply rather than a drop in demand.
Tight inventory pushed buyers to move fast
It is important to note that the number of new listings coming onto the market was notably down, by 30.7% compared with the same month last year. With the tight inventory in July 2021, sales measured against the new listings in the market went up by 14%.
The tight inventory also appears to have pushed buyers to make quick decisions. As a result, the average number of days a listing stayed on the market went down significantly, by 20%. The speed of sales also increased by 11.8% compared with the previous month, as properties took fewer days to sell.
For buyers, this meant that preparation was essential. A mortgage pre-approval, a clear budget and a short list of must-haves helped people act quickly without overpaying.
July 2021 condo sales surged
Once again contrary to popular belief, condominium sales saw a whopping 155% increase compared with last year. The average selling price also continued its upward path, with a 10.8% increase.
There were 14,437 new condo listings in the market, a notable 64.6% increase. While more new listings came to market, sales of those listings also rose by 22%.
A condo took 13 days to sell, compared with 19 days in the same period last year. That is a 31.6% reduction in the time it took for a condominium to sell.
What happened in the rental market
The condo rental market in July 2021 saw leased condos double, with a 104.4% increase. Although condo leases were high, the average rent for a one-bedroom apartment decreased by 9.4%. There were also fewer apartments brought to market, a 12.8% decrease.
For investors, lower rents meant a closer look at the numbers before buying a unit to rent out. For tenants, on the other hand, it was a chance to find better value, and for some, a chance to save toward a first home.
Reading the July 2021 report today
Rates and conditions have changed a great deal since then, so treat these numbers as a snapshot of that month. Still, the July 2021 report holds a lesson that lasts. Headlines and general opinion do not always match the data, so it pays to look at the actual numbers before you decide to buy, sell or wait. To follow the trend, compare this report with my breakdown of the June 2021 TRREB report and my May 2021 home sales report. For current market data, visit TRREB’s website.
Whether you plan to buy, sell or do both to move to a bigger house or downsize, I am always available to talk it through. There is often a better solution a professional can offer, sometimes one you had not thought of.
Talk to a Mississauga real estate agent
I will be glad to hear from you at your earliest convenience. Please send me a note through my contact page or call me at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage. If you found this helpful, I would appreciate a Google Review.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
