The Spring market is here and it is buzzing! Three months strong, 2021 is proving to be a record breaking year. Toronto surpassed the $1 million dollar mark in February and continues to grow this past month. March 2021, the Toronto Regional Real Estate Board (TRREB) reported an average MLS price of $1,097,565, an increase of 21.6 per cent over the same time last year. March sales activity proved impressive as well with TRREB reporting 15,652 sales, a 97 per cent increase compared to 7,945 sales reported in March 2020. More than half of those sales happened in the latter two weeks of March 2020 when the pandemic was in full swing.
Demand has increased significantly in the last year, with limited inventory entering the market to satisfy the increased buyer demand, as a result of low borrowing costs and the need for more space due to Covid. As you may know, the federal government will table its budget on April 19th, 2021. If they do not tax the housing industry, directly or indirectly, as rumors have suggested, we anticipate that this heightened demand will continue for the foreseeable future across all price points, and there will be further demand coming from foreign buyers once the greater population is vaccinated and travel restrictions loosen up.
As buyer activity increases beyond the GTA’s borders, demand has not slowed in Central Toronto. The average price for a detached home in the centre core was $2,549,545 last month, up 168.9 percent from last year during the same time period. With active listings almost at a stand still this month with only -0.7% change year-over-year, it should be an incredibly strong spring market ahead with significant price appreciation.
The condo market is starting to recover as well since it slowed in the third and fourth quarter of 2020 due to Covid. There was a 94.5 per cent increase in the number of sales this past month compared to March 2020! We are also seeing an increase in the average condo price, rising 8.4 per cent from $727,605 in February to $789,250 in March (2021). We anticipate the condo market will continue to improve as more businesses, colleges, and universities open up, and foreign buyers return.
Passing the anniversary of our city’s first Covid-19 shut down, we wanted to most importantly thank all of the front line workers, and also extend our sincerest gratitude to all of the sellers and buyers that we have worked closely with over the past year for trusting us with your homes, your health and your families.
If you ever have any questions regarding the market or your home, feel free to reach out to me anytime at 416.223.1818. I’m never too busy to talk about real estate!
All the best and stay healthy,