The TRREB home sales report for February 2021 showed record-breaking sales and a continued rise in house prices across the GTA. In this post, I break down the key numbers and explain what they meant for buyers and sellers in Mississauga and the rest of the region.
This post was first published on March 5, 2021. The figures below are from that report.
From a predicted crash to a hot market
CMHC’s report in May 2020 rang alarm bells. It forecast a crash of the real estate market, with residential home prices tanking by up to 29%.
That forecast raised many questions for would-be homebuyers, especially first-time buyers. It also prompted an immediate rebuke from experts at major real estate companies, including RE/MAX, who challenged CMHC’s approach.
After watching a hot real estate market continue throughout the year, CMHC reversed its forecast. It now expected an increase in housing prices instead of the drastic drop it had claimed and stood by for so long. By February 2021, the gap between that early warning and reality was clear. You can read more about that forecast in my post on the CMHC home price prediction.
Sales and prices in February 2021
The Toronto Region Real Estate Board (TRREB) released its latest sales report, and it reflected record-breaking sales and a continued uptrend in house prices.
TRREB reported a whopping 52.5% increase in real estate transactions compared with the same month in 2020. Compared with the previous month, January 2021, sales jumped 16%.
Prices showed a 15% jump compared with a year ago. In addition, the upward trend continued, as prices rose a further 2.3% compared with January.
Listings and days on market
Even though new listings rose sharply, up 43% from last year, there were 3% more sales per listing than a year earlier. In other words, buyers absorbed the extra supply and still wanted more.
With multiple offers on almost every property, homes also spent 17.4% less time on the market than in the same period last year. Compared with the month before, the market grew even tighter. Properties sold in 18% fewer days than in January.
For buyers, that meant little time to think. Many had to book a showing, review the details and make a decision within a few days. As a result, preparation made a big difference in February 2021.
February 2021 condo sales in the 416 and 905
Detached homes, semi-detached homes and townhouses pushed these figures up. However, the condominium apartment sector also recorded a mammoth 64% sales increase compared with last year, in both the ‘416’ and ‘905’ area codes.
This was an interesting shift. Earlier in the pandemic, many buyers had moved away from condos in favour of more space. By then, condos had found strong demand again, both in the city and in suburbs such as Mississauga.
Practical lessons for buyers and sellers
A fast market rewards people who plan ahead. The lessons from February 2021 still apply whenever competition heats up, so here are a few habits worth keeping:
- Get a mortgage pre-approval before you start viewing homes, so you know your real budget.
- Decide on your top price before an offer night, and stick to it.
- Read the listing details and any disclosures early, instead of on the day offers are due.
- If you are selling, price the home close to its true market value and prepare it well for showings.
Above all, stay calm. A rushed decision on the biggest purchase of your life can be costly. A clear plan, on the other hand, lets you act quickly without losing sight of your goals.
What the February 2021 numbers pointed to
In summary, as of the February 2021 report, historic low mortgage rates, tight supply and the expected reopening of the economy all pointed to further increases in house prices. At the time, nothing suggested the market was looking back.
Of course, markets change. Rates have moved a great deal since then, and conditions today are very different. For a later snapshot, compare this report with my home sales report for July 2021 and my December 2020 housing sales analysis. For current charts and data, visit TRREB’s website.
Meanwhile, please take care of yourselves and follow the safety precautions from health care professionals.
Talk to a Mississauga real estate agent
Do you have questions about what these numbers mean for your own plans? I am happy to help. 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.
