By: Maurice King

Market Remains Heated!

Tags: GTA REAL ESTATE, REAL ESTATE, 2021, MARKET

The housing market has been red hot throughout the pandemic, and while the number of sales is starting to slow, so far there hasn’t been a sharp pullback in prices. The Toronto Regional Real Estate Board says August home sales slowed from the frenzied pace seen earlier in the year, but market conditions have tight ened as supply plummeted by 43 percent and prices rose yet again.

The pace of sales slowed, but the market has remained heated with bidding wars still the norm and fewer people putting their homes up for sale. Prices have also continued to climb -- even in rural and suburban corners of the region -- as remote work became more common and the closures of many businesses during COVID-19 helped people save money for homes.

While areas surrounding Toronto, known as the 905, were once known to have slightly lower prices than the city, TRREB said the average cost of a home there hit $1,108,981 in August, up from $923,204 the year before.

TRREB believes this pattern won’t end soon and the market will remain in favour of sellers as buyers continue to take advantage of low interest rates.

“There has been no relief on the supply side for homebuyers, in fact, competition between these buyers have increased,” said TRREB’s chief market analyst Jason Mercer, in a statement.

As we move toward 2022, expect market conditions to become tighter as popu lation growth in the GTA starts to trend back to pre-COVID levels. While activity has backed off from the early-year madness, this is still a very strong market characterized by elevated demand and upward price pressure.

Strong demand for housing is why prices are more likely to go up than down in the near term at least.