July 2021 Market Review
July 2021 Review
Number of Transactions
In July 2021 the number of transactions were down by 2% compared to June 2021 on a seasonally adjusted basis; however, property prices remain strong and this shows that there is continued demand for home ownership.
The Toronto Regional Real Estate Board (TRREB) notes that transactions in July 2021 compared to July 2020 were lower by 14.9%; however, it is notable that July 2020 experienced a record-breaking number of transactions due to pent up demand that resulted from COVID-19 social restrictions which had been in place from March 2020 to June 2020. The condo market has shown strength relative to last year with increased transactions.
Looking into the different geographic pockets of Toronto and the Greater Toronto Area (GTA) we notice the following changes in transactions when comparing July 2021 to July 2020. In the Toronto area: a 22.3% decrease in transactions for detached properties; a 25.3% decrease in transactions for semi-detached properties; a 6.1% decrease in transactions for townhouses; and a 4.2% increase in transactions for condominiums. In the GTA: a 27.4% decrease in transactions for detached properties; a 14.9% decrease in transactions for semi-detached properties; an 8.7% decrease in transactions for townhouses; and a 17.2% increase in transactions for condominiums.
Increasing Sale Prices
On TRREB, when comparing July 2021 to July 2020, the average sale prices for the Toronto area increased as follows: a 5.7% increase for detached properties; a 2.1% increase for semi-detached properties; a 5.1% increase for townhouses; and a 4.8% for condominiums. In the GTA, the average sale prices increased as follows: a 27.0% increase for detached properties; a 22.1% increase for semi-detached properties; a 19.3% increase for townhouses; and an 11.7% increase for condominiums.
What trends are we seeing?
Remote work and school have become our norm and families are looking to upgrade their space and square footage to accommodate their lifestyle. The urban sprawl has been reflected in the number of products sold within the GTA compared to Toronto with more significant average price increases in the GTA than that of Toronto. In addition, in a very “non-traditional” year with COVID-19, we are seeing a “traditional” flow to transactional patterns with July and August thus far being slower months. This is likely a function of consumers (sellers and buyers alike) utilizing the bandwidth afforded to them by reduced social mobility restrictions and enjoying their summers.
What lies ahead for 2021?
The strong upward pressure on home prices will be sustained with the combination of an absence of supply and an expected resurgence in population growth moving into 2022.
Footnote: Source of statistical data is from the June 2021 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.
Monthly Percentage Change in Number of Units Sold –July 2021 – Illustration A
Month-Over-Month Average Price Percentage Change – July 2021 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – July 2021 – Illustration C
Monthly Percentage Change in Average Sale Price – July 2021 – Illustration D