TRREB’s April GTA Data.
Toronto, May 10th, 2021
By Ivan Kalinin
For a while now, I have been seeing headlines of the market increasing by 360% year over year. And while it is definitely an exciting fact, we have to remember how the market was performing last year in April, if we were to compare it to this year’s.
The reality is that the market in April 2020 was extremely low, as people were still trying to figure out the ramifications of the first lockdown. Fast forward to this year, and we find ourselves in an extremely competitive market full of people, spurred by the confidence of vaccine rollout and the mass inoculation that is currently taking place.
Is The Market Slowing Down?
With that being said, the picture is a bit different when it comes to comparing it to the previous, record setting month. While the sales more than quadrupled year-over-year, they were actually 12.7% lower than March this year. New listings also dropped and are 8.4% below the previous month’s mark. On top of that, the prices flattened out since March.
All of this points to the fact that while still a seller’s market, it might be slowing down.
Does This Mean That We Can Expect Lower Prices?
In order for the price growth to be sustainable over a long period of time, there must be an ongoing trend of population growth. With Covid, the population surplus was negligeable and therefore, we may be seeing first signs of a slow down, at least in the short term.
But, as the province will start opening up it’s borders and accepting new immigrants, prices are bound to continue to go up. The low borrowing costs and low inventory seem to be the perfect recipe for price growth in real estate. According to Jason Mercer (Chief Marketing Analyst at TREB): “Renewed population growth over the next year coupled with a persistent lack of new inventory will underpin home price appreciation.”
GTA Is Still Experiencing A Strong Market
The sellers of detached homes across the GTA are still benefiting from a competitive environment. The sales went over 365% increase and prices grew by more than 40% compared to last year.
Condos outside of Toronto have grew $450% in sales and the prices jumped by 19.6% since last April.
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GTA MARKET STATS
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Ivan Kalinin is a sales agent at Key Toronto Real Estate Group. Zoocasa Realty Inc. – Brokerage independently owned and operated, He can be reached at 416 858 8085. Not intended to solicit clients already under contract.