The Toronto Regional Real Estate Board (TRREB) report for July 2021 indicates that the market has hit its lowest month in home sales this year with a 15% decline in the number of sales and a 5.9% decrease in the average selling price in the city of Toronto.
Year-over-year dynamics were also negative with an 8.6% drop in the number of sales. While the market usually tends to slow down in the late summer, this year’s negative dynamics were also caused by the highly active lockdown market and demand spike in July 2020.
The average selling price of a detached home has reached $1,633,649, which is a 3.9% decrease compared to June and a 6% increase year-over-year. The number of sales has also declined by 21.7% compared to the previous month.
Semi-detached houses are now selling at $1,205,814 on average, which is a 4.8% decline from the previous month and a 2% increase compared to July 2020. The number of sales has also dropped by 22.9% compared to last year.
The townhouses segment has decreased by 5.9% in average price ($1,172,796) and declined by 22.2% in the number of sales compared to last month. Year-over-year sales number has also shrunk by 30.5%.
The condo market has seen a complete post-lockdown recovery with a 4.8% increase in average selling price ($715,977) and 4% growth in the number of sales compared to the previous year. According to the Q2-2021 Condominium Market Survey conducted by Urbanation Inc., 9,001 new condominium units were sold in the second quarter of 2021 being 5.5% higher than Q2 sales in 2020 and nearly reached the level of Q2 in 2019.
The strong upward pressure on prices for all home types is likely to persist in the fall and the upcoming year due to anticipated population growth with international borders reopening.