Shifting housing needs during the pandemic and historically low-interest rates have been key drivers of demand in the Canadian market over the last six months. People who managed to enter the market a few years ago, and have seen their home values increase, are now looking to move up in the market to accommodate their changing needs.
Ontario - A Strong Start for 2021
Toronto, 12 February 2021 -- January 2021 home sales amounted to 6,928 – up by more than 50% compared to January 2020. This strong start to 2021 included sales growth across all major segments including condominium apartments, both in the City of Toronto and surrounding GTA regions.
New listings were also up on a year-over-year basis in January, but not by the same annual rate as sales. This means market conditions tightened compared to January 2020, resulting in the continuation of double-digit growth in the MLS® Home Price Index and the average selling price.
The average selling price for January 2021 was up by 15.5% to $967,885 year-over-year. The MLS® HPI Composite Benchmark was up by 11.9% over the same period.
Price growth was driven by the low-rise market segments, while the average condo apartment price was down in Toronto. However, if we continue to see condo sales growth outstrip condo listings growth, we could start to see renewed growth in condo prices later this year.