March 5, 2021
CMHC’s report in May 2020, rang alarm bells by forecasting a crash of the Real Estate market by residential home prices tanking up to 29%.
It raised many questions in the minds of would-be homebuyers, especially first-time homebuyers. It prompted an immediate rebuke by experts from major Real Estate companies, including RE/MAX, challenging the authenticity of CMHC’s approach.
After watching a continued hot-hot Real Estate market throughout the year, CMHC reversed their forecast for an increase in housing prices instead of a drastic drop previously claimed and stood by it for so long.
With Toronto Region Real Estate Board (TRREB)’s latest sales report reflects record-breaking sales and continued uptrend of house prices.
It reported a whopping 52.5% increase in Real Estate transactions in February 2021, compared with the same period from the previous year, 2020.
While comparing with last month, January 2021, a jump of 16% sales are recorded.
Simply putting a double increase in Housing prices does not justifiably reflect a 15% price jump compared with a year ago.
The upward trend in housing prices continues to grow as February saw a further uptick of 2.3% compared with January of this year.
Even though we saw a tremendous number of new listings, up by 43% from last year, there were 3% more sales per number of listings compared with last year.
With multiple offers on almost every property in the market, the property remained 17.4% less on the market compared with the same period last year.
The situation is even tighter compared with last month where the properties further reduced the number of days, 18% fewer days, to sell.
Although Detached, Semi-detached and Town Houses pushed these figures high, the condominium apartment sector recorded a mammoth 64% sales increase compared to last year, both in the ‘416’ and ‘905’ area codes.
In summary, historic low mortgage rates, tightening supply and demand scenario, and opening of markets soon are all indicators pointing to further increase in house prices and not looking back.
Take care of yourselves and follow the safety precautions defined by healthcare professionals.
Please pray for the safety of all and seeing an end to the COVID-19 pandemic soon.
#BeSafeAndHelpOthersBeSafe
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A. Q. Mufti
Please see TRREB’s Housing Charts for further details
