April 2021 Market Review

April 2021 Review

Market activity began to slow down in April 2021 compared to March 2021. The Toronto Regional Real Estate Board (TRREB) reported April 2021 number of transactions dropped 12.7% compared to the number of transactions in March 2021, however, the number of transactions was triple that of April 2020; an increase of 362.1%.  Comparing April 2021 number of transactions to April 2020 transactions is not a valuable figure when accounting for the fact that in April 2020 social restrictions were impacting the population as a result of COVID-19 to a greater extent than April 2021.

Looking into the different geographic pockets of Toronto and the Greater Toronto Area (GTA) we notice that the number of transactions in April 2021 compared to that of March 2021 showed the following changes.  In the Toronto area: 8.8% decrease in transactions for detached properties; 3.4% increase for semi-detached properties; 4.1% increase in transactions for townhouses; and 12.9% decrease in transactions for condominiums.  In the GTA: 15.2% decrease in transactions for detached properties; 19% decrease in transactions for semi-detached properties; 10.7% decrease in transactions for townhouses; and 16% decrease in transactions for condominiums.

Increasing Sale Prices

On TRREB, sale prices in April 2021 stayed relatively the same as March 2021 with an average sale price of $1,090,002 compared to $1,097,565, respectively. When comparing April 2021 to April 2020, the average sale price for Toronto and GTA areas increased by 41.3% for detached properties, 23.6% for semi-detached properties, 25.9% for townhouses, and 19.6% for condominiums.

What trends are we seeing?

The deceleration of sales suggests prospective homebuyers could be worn out from the fast-paced market. Sellers are seeing fewer offers being brought on offer night and buyers are less inclined to be in a multiple offer situation. With soaring home sales from Q1 of 2021, homebuyers are making a return to the downtown core and the condominium segment has recovered to pre-COVID levels.

What lies ahead for 2021?

When considering headlines regarding a slowing real estate market it is important to keep in perspective the aggressive pace that the real estate market had been increasing and that sustained activity at the levels seen in the first three months of 2021 is unlikely.  The proposition of potential market intervention by the government along with possible interest rate increases sooner than previously expected may result in a more balanced and healthier market.  We are still of the opinion that as social mobility escalates globally there will be an influx of immigration to Toronto and GTA codes which will provide continued support to the real estate market.

Footnote:  Source of statistical data is from the April 2021 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.

 

Monthly Percentage Change in Number of Units Sold –April 2021 – Illustration A

Month-Over-Month Average Price Percentage Change – April 2021 – Illustration B

Seasonally Adjusted Month-Over-Month Average Price Percentage Change – April 2021 – Illustration C

Monthly Percentage Change in Average Sale Price – April 2021 – Illustration D

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Admin

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