Major factors that might influence the market in the near future revealed
Toronto housing activity has weakened for the fourth consecutive month, although low inventory continues to inflame prices and competition.
The market saw a total of 9,390 home sales in July, representing an annual decline of 14.9%, data from the Toronto Regional Real Estate Board indicated.
However, the TRREB stressed that “demand for ownership housing has remained strong despite a pandemic-related lull in population growth.”
“Of specific note is the condominium apartment market, which has seen a marked turnaround in 2021 with sales up compared to last year,” said Kevin Crigger, president of the TRREB. “First-time buyers, many of whom were slower to benefit from the initial recovery phase, remain very active in the marketplace.”
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Impelled by sustained demand and activity in the single-detached segment, the average home price in Toronto went up by 12.6% year over year, reaching approximately $1.062 million.
“The annual rate of price growth has moderated since the early spring, but has remained in the double digits,” said Jason Mercer, chief market analyst at the TRREB. “This means that many households are still competing very hard to reach a deal on a home. This strong upward pressure on home prices will be sustained in the absence of more supply, especially as we see a resurgence in population growth moving into 2022.”
Much of the boost in potential buyers will be coming from the backlog of those seeking citizenship or permanent resident status in Canada.
“A large share of these newcomers will ultimately choose to call the GTA home. This means ownership and rental market conditions will remain tight with upward pressure on prices for the foreseeable future,” said John DiMichele, CEO of the TRREB. “Policymakers at all levels must pursue a coordinated effort to bring on a greater diversity of supply in major metropolitan areas.”
