September Real Estate Update for the GTA

Each year, we generally see an uptick in sales, average selling price, and listings after Labour Day, and September 2021 was no different.

Sales increased relative to August and were also at the third-highest mark on record for the month of September. The average selling price was up both month-over-month and year-over-year. The number of Houses & Condos purchased last month was up in line with the regular seasonal trend from August. Compared to last year, market conditions tightened noticeably, with home purchases representing a substantially higher share of listings, and a significantly lower number of new listings.

Resurgence in the Condo market was a factor in the higher share of listings sold. The total number of purchases was down 18 percent from 2020’s record September result, in large part due to the lower number of available options, which were down 34 percent from the same time last year.

Demand has remained incredibly robust throughout September with many qualified buyers who would buy a home tomorrow provided they could find a suitable property. With new listings in September down by one-third compared to last year, purchasing a home for many is easier said than done. The lack of housing supply and choice has reached a critical juncture. Bandaid policies to artificially suppress demand have not been effective. This is not an issue that can be solved by one level of government alone. There needs to be collaboration federally, provincially, and locally on a solution.

The average selling price for all home types combined was up by 18.3 percent year-over-year to $1,136,280.

Price growth in September continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses. With an average price for low-rise homes at $1,136,280, historically, this is the highest we have seen within the GTA. However, competition between buyers for condo apartments has picked up markedly over the past year, which has led to an acceleration in price growth over the past few months as first-time buyers re-entered the ownership market. What we also noticed was Condo Apartment purchases outpaced all the Freehold property types by 113 percent, increasing the average price of Condo Apartments by 8.5% compared to last year's prices. Look for this trend to continue.

In regards to what the trends are in the pre-built Homes and Condos within the GTA. As a Platinum Broker within the Pre-Construction sector, we continue to see the demand for new homes and condos outpace past trends. Our VIP Insider Clients'. at NuVilla Group, have always been offered the opportunity to skip-the-line, for either pre-built homes or exclusive listing, which is great as it helps them beat bidding wars.

What we were able to do this past year for our clients was something we are very proud of. We meet with our real estate developer partners on a regular basis, to discuss upcoming freehold and condo plans. At the start of this year, we leveraged our partnership and provided some of the best-purchasing terms we have seen since 2010. Ultimately, helping our clients purchase their new homes and working in their financial comfort zone.

One such arrangement we offered was to pay only 5% towards a new home in the first 12-months. This really helped clients', especially during the current environment when people are not spending on entertaining and vacations, many were able to save a considerable amount. Which we believe is one factor as to why we continued to see the demand this year, and of all the new developers we have offered our VIP Insider Clients, 81-percent of all new homes and condos offered were purchased within the first few weeks of their launch.

Another changing trend we have noticed is the increased demand for Townhomes. As many Condo Apartment owners may outgrow their suite, Townhomes are the natural progression. The recent Townhomes we offer are far larger than your traditional styles and, in some cases, offer luxury layouts such as 600sq.ft private terraces. Due to the rising building costs and demand for luxury finishes, the average townhome price within the 416 & 905 has increased by 21.5%.

Toronto has seen an increase in employment growth, by 9.1%; reducing unemployment at the same time to 9.3%. Considering the recent increased inflation rate, 4.1%, the employment figures are welcoming to the average household. The Bank of Canada is expected to increase the overnight rate, to offset the inflation rate, which will impact the historical low mortgage rates. Homebuyers’ may want to assess their mortgage budget based on the higher average rate, in order to consider the possible rate increase in the near future. However, as our rates have been in the low-mid 2-percent range, it is still incredibly cheap time to borrow.

You may be considering purchasing your next home, or sell your current house. If that is the case, contact our team and we can provide you with the same proven opportunities, or just get you started towards your homeownership goal.