Toronto’s first 2021 Market Report is in.
January, we saw over 3500 new listings hit the market with an average sold price of $866,331. That’s a -2% year over year change. With the overall average Days On Market also increasing to 31 from 29.
Let’s start with Condominiums. The average sale price has dropped by 7.9% year over year. This brings our average sold price down to $624,886. What is happening on the ground though? Condos that have been sitting idle last year, are now starting to sell. And in many cases, they are selling in, multiple offers! We have seen up to 20 offers on a condo in the past weeks.
The window of opportunity for a condo deal is closing as prices are rebounding to pre-covid days. If you are considering investing in a condo, now is the time.
Next we have Detached homes. They have improved dramatically since last year. We see a 15.4% year over year growth reaching an average sold price of $1,581,400
Semi-detached and freehold townhomes/rowhomes also saw an increase in price of 19.9%, the highest jump in the market. The average semi sold price now sits at $1,204,857 and freehold townhomes at $1,096,956.
We are seeing levels unseen since January-March 2017. Up to 70 and 80 offers on one house, especially in the suburbs. Home owners who bought and closed in December, reselling the house this year for a $270,000 profit in two months.
Is this a sustainable market? Will the feds be cracking down?
For now, our recommendation if you are a seller who needs and can sell this year, is to sell now. Sell now before the surge of spring and summer inventory, and the market begins to balance out. Now you have very little competition; there is a severe shortage of houses on the market.
Buyers: Be patient. Keep looking and exploring and understanding this market, yet these will not be the last homes for sale, there will be more coming based on historical data, and our experience, in the spring and summer. You will have less competing offers, and more reasonable purchase prices.
Buyers of condos? The opposite is true. Now is the time before we reach pre-covid prices, which we are headed for based on current sales data.
As always, please reply to this email if you are looking to understand your options better. Or what your home may be worth today.