The TRREB home sales report for June 2021 is finally out. In it, the Toronto Regional Real Estate Board (TRREB) confirms what I have been telling my clients for a long time. In my view, home prices would keep their upward path, because of the influx of new immigrants waiting for air travel restrictions to lift after the COVID-19 pandemic.
This post was first published in July 2021. The figures below are from the June 2021 report.
What the TRREB Home Sales Report Said About Supply
The report made a clear point about population and supply. In its own words:
“…a resumption of population growth based on immigration is only months away. While the primary focus of policymakers has been artificially curbing demand, the only long-term solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region.”
In other words, demand was not going away. People would keep moving to the region, and they would need homes. Limiting demand might slow things for a while. However, only more supply could ease affordability over the long run. You can find TRREB’s own market reports on the TRREB website.
Sales, Prices and New Listings in June 2021
The total number of homes that changed hands was down by 9.1% compared to the month before, which is a common pattern for June. Still, sales outpaced the same month last year by 28.5%. That is a strong jump in just one year.
Similarly, the average selling price kept its double-digit growth, up 17% compared to last year. At the same time, prices held at a plateau compared with the month before. That was somewhat good news for potential buyers. Meanwhile, slightly fewer new properties came to market, a 0.1% decline compared with June 2020.
Competition among buyers was the force behind faster sales. According to the TRREB home sales report, properties stayed on the market 34.6% fewer days than in the same month last year. The competition was also visible month to month. Compared with May 2021, properties sold in 27.8% fewer days.
Condos in the TRREB Home Sales Report
Condominium sales, contrary to general perception, leaped forward. In fact, they almost doubled, rising 79.8% over the level recorded in May. The average selling price of condominiums, though, saw a slight dip of 1.4% compared to 2020.
On the supply side, the number of condominium properties listed for sale jumped by 42.8% compared to the same month last year. There was also more buying and selling activity, up 17% compared with the same month in 2020. Even so, condos stayed on the market 35.3% more days than the year before.
The Condo Rental Market
The condominium rental market also shifted. The average rent for a one-bedroom apartment fell by almost 17%. At the same time, there were almost double (78.8%) the condo apartments available for rent compared to last year. For tenants, that meant more choice. For investors, on the other hand, it meant more competition for good tenants.
What These Numbers Meant for Buyers and Sellers
So what could you take from this report? First, freehold homes stayed in high demand, and they sold fast. Buyers needed to be ready, with a pre-approval in hand and a clear idea of their budget. Second, condos offered more choice, since more units were listed for sale and for rent. As a result, condo buyers often had more time to compare options.
For sellers, pricing mattered more than ever. A home priced in line with recent sales drew strong interest. By contrast, an overpriced home could sit, even in a busy market. Each TRREB home sales report helps you see these trends as they form. For the next month’s numbers, read my July 2021 market update. You can also compare them with my May 2021 market review.
Of course, the market has changed a great deal since 2021. For a more recent picture, see my post on why the price discount is closing. I am always available to discuss your situation, whether you plan to buy, sell or both. For example, you may want a bigger house, or you may be downsizing.
Talk to a Mississauga real estate agent
Do you have questions about your own plans? Please send me a message or call 416 908 5600. I am A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage, and I am always glad to help.
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.
