MARKET STATISTICS | MAY 2021

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COVID-19 has proved to be no match for Toronto's housing market, which has continued to see soaring prices and bidding wars even as lockdowns and stay-at-home orders were implemented.

Despite a slight decline in sales over the last two months, market conditions remained "tight" enough to push the average selling price to an all-time record in May. Buyers are exhausted from losing out on numerous bidding wars and are taking a break. Although fewer homeowners put their properties up for sales compared with April, the number of new listings was still higher than May of last year. In addition, with a new mortgage stress test introduction, some took a back seat and decided to wait and see how the market will react.  

If we take Toronto as an example, the increase in average selling prices amounted to a 28 per cent spike on a year-over-year basis.People actively looking to purchase a home continue to face a lot of competition from other buyers, which results in very strong upward pressure on selling prices. This competition is becoming more widespread with tighter market conditions in the condominium apartment segment as well and we see Condo prices starting to rise.

While some raise concerns that housing market is expected to collapse, it is very unlikely. Central bank of Canada closely monitors the situation and takes proper measures. Also, it is very important to note that Immigration will continue to be a key driver in advancing Canada’s economy, especially in the context of low birth rates and its vital role in growing the working age population, and it will remain so into the future. Government of Canada predicts that by the early 2030s, it is expected that Canada’s population growth will rely exclusively on immigration. 

We will see a slight slowdown in sales as well as minimal adjustment in home prices, however my assumption is that seller’s market will prevail for some time

Want an expert’s opinion on the real estate market? Get in touch with me today.

Compared to May of 2020, an average price of Detached Home during May of 2021 in:
- Toronto: +19% at $1,71M
- Vaughan: +21% at $1,65M
- Richmond Hill: +35% at $1,80M
- Mississauga: +35% at $1.56M
- Markham: +27% at $1,72M
- King City: +54% at $3,05M
- Newmarket: +24% at $1,17M
- Aurora: +32% at $1,51M
- Bradford: +40% at $1,11M
- Innisfil: +44% at $930,000
- Milton: +33% at $1,33M
- Stoufville: +30% at $1,61M
- Burlington: +23% at $1,38M

𝙋𝙡𝙚𝙖𝙨𝙚 𝙚𝙢𝙖𝙞𝙡 𝙢𝙚 𝙛𝙤𝙧 𝙖 𝙥𝙚𝙧𝙨𝙤𝙣𝙖𝙡𝙞𝙯𝙚𝙙 𝙨𝙖𝙡𝙚𝙨 𝙧𝙚𝙥𝙤𝙧𝙩 𝙤𝙣 𝙮𝙤𝙪𝙧 𝙨𝙩𝙧𝙚𝙚𝙩 𝙤𝙧 𝙣𝙚𝙞𝙜𝙝𝙗𝙤𝙧𝙝𝙤𝙤𝙙.

You might have some questions about the local real estate market. Getting answers to these questions is crucial if you plan to move this summer. But, even if it’s just for curiosity, it’s always good to stay up to date on what’s happening in the real estate market.

So, please, don’t hesitate to reach out to me. I’m here to help.
Stay healthy, happy and well,
Fuad Abasov
Direct: 647-801-3401