Market Update: Competition Is Still Hot And Showing No Signs Of Slowing
The pandemic has created a frenzy in the Toronto real estate market. Demand has increased to a level that has fuelled skyrocketing prices in an already inflated market. Supply is incredibly outpaced despite the fact that listings have increased year on year. March in 2021 was no different.
Sales reached a new record of 15,652 in March, which is a 97% increase from the previous year at 7,945 sales. This could be explained by the fact that last year there was much more uncertainty at the beginning of the pandemic amidst the first lockdowns and widespread economic shutdowns. However, unlike last year, there are significantly more people willing and able to buy now, a number that has surpassed optimistic predictions for this year already.
March was an interesting month. In the first half, sales totalled 6,504 which was only 41% up from last year. However, in the second half, from March 15 until March 31, there were 9,148 sales which was an incredible 174% increase from last year.
However, even a year after the pandemic, supply and available inventory has not been able to meet demand, meaning prices increase. The average price of a home is up 21.6% at $1,097,565 with listings up 57% from last year. Detached homes have skyrocketed to an average $1,402,849 while semi-detached are up 17.5% at $1,045,519. Condos only increased 2.6% to $676,052.
This constant pressure and drive on price has already forced many prospective buyers out of the market. However, there are opportunities in a market like this. Despite the competition and increasing prices, you have a valuable asset in a realtor that knows their stuff. Being aware of the market is one thing but knowing how to play it when it comes to offer night is another. You need a realtor that can do both. The real estate market is showing no signs of slowing or cooling in the current climate. Having a Fridman agent on your side is going to benefit you in a market that is boiling with competition.