The August 2021 Toronto Real Estate numbers are in! At Toronto Realty Boutique, our business foundation is built on expertise in Finance, so rather than just posting these numbers and letting our clients sift through the headlines, we’re going to break them down for you.
The news headlines can be confusing – we see it all the time. This month was the best ever, followed by the market is tanking. How can this happen when everyone is looking at the same numbers? Media, blogs – anyone talking about real estate can provide confusing takes on what’s really happening. That’s why we pride ourselves on our background in Finance and providing you with a snapshot of what’s actually happening.
August 2021 Real Estate Numbers: Toronto Condo Market
If there is one thing to note in the August 2021 Real Estate Numbers in the post-Coivd condo numbers, is that it is a healthy, stable market. Yes, we said it. The condo market is, and always will be a safe, profitable place to put your investment dollars.
The 4% year-over-year increase in price shows signs of stability, especially during what is traditionally a slower, quiet month in the Toronto market.
The number of condos sold has increased by over 20% year-over-year, indicating more inventory is available and that buyers are still very active.
The number of days on the market which sits at 20 as the average for August shows that buyers are not in a rush. Bidding wars are few and far between. Sellers are holding for their price and buyers are taking their time finding the right home. But they are finding it and when they do, they are buying. No desperation bids or overpaying.
If you are thinking of selling your condo, the fall market is going to be an excellent time to list. Our recommended strategy is to list at market value – this isn’t a time to list low and hold back offers. You’re going to scare away too many buyers.
If you’re in the market to purchase a condo, start looking now. The fall market is going to bring out new buyers now that we’re seeing a somewhat return to normal. Have your eye on something you love? Make sure you have a solid market analysis before you make an offer so you’re not overpaying. Don’t submit an offer that’s too low either – sellers won’t be taken advantage of.
August 2021 Real Estate Numbers: Detached Toronto Homes
The August 2021 Real Estate Numbers show one thing – the Detached Home Market in Toronto is wild. There we said it. Each month we anticipate these numbers more than most because we just don’t believe the numbers can keep going up. But they do. Up. Up. Up.
During the month of August, we saw a huge increase in prices when we examine the year-over-year numbers – over $215,000 from August 2020. What’s driving this price increase? Demand – plain and simple.
Many families are not quite ready to throw in the towel when it comes to living in Toronto. In fact, many people are doubling down and moving from condos, townhomes, or semis into Detached Homes. What does this show? Confidence in the market, in the city, and the comeback that Toronto is on track for.
When we look at the decrease in the number of homes sold, we need to look at both sides of the coin. August is known as the big vacation month in the city – many city dwellers are up in cottage country or taking advantage of Canada being on the “green list” for many overseas destinations. We can note that inventory may be down, which may point to a very hot fall market.
The other side of that coin is the not-so-great fact that we must note. With these prices soaring, the fact is many buyers are simply being priced out of the market. With the average selling price sitting at over $2.3 Million, the group that can afford these homes is getting smaller and smaller.
With an average of 24 days on the market, sellers are sticking to their list price and buyers are taking their time. It’s longer than most would like to see in the hot market, but at these prices, buyers are making sure they love what they’re getting.
If you’re thinking of buying a detached home, make sure you’re looking at all of your options and you’re getting into a home and neighbourhood that you love.
If you’re selling your detached home, make sure you have a strategy in place that will make your home shine and stand out from the rest. There are many tactics involved in selling a detached home for a stellar price in today’s market so you should have an agent that’s experienced and will show you where your home should be priced based on facts, not guesses (and not just comps!).
August 2021 Real Estate Numbers: Toronto Semi-Detached Homes
The August 2021 Real Estate Numbers show that the semi-detached market is another very stable, healthy segment that buyers and sellers should have confidence in.
The 5% increase in year-over-year prices shows that prices in this segment of the market is growing at a sustainable rate that buyers and sellers will both be happy with.
The number of transactions during the month of August is down, and we’re certain this is related to the traditional slow-down in August which shows real estate trading to be one of the slowest of the year, completely due to seasonality.
If you’re going to be buying or listing your semi in the fall season, it’s going to be good for both sides.
Pricing strategy should be examined with an at-market lens, allowing for a low number of days on the market while still getting the attention of the big buyer pool that will be looking in September and October.
The Fall Market – What’s to Come
If you haven’t had the chance to read our 2021 Fall Real Estate Predictions, we encourage you to check it out. We’ve got some great insights in there that we’re already seeing come to fruition in the market.
If you’re thinking about buying and want to know more about specific neighbourhoods and what the numbers really look like, reach out to us. We study the numbers weekly to know exactly what’s going on for our clients who are looking to buy.
Listing in the fall season should be a wonderful time to sell, but only if you have the right listing strategy in place. It’s more than great photos that sell a home in today’s market. You need to know the numbers and what’s happening among your competition and your comparable homes – there is a BIG difference.
Contact Toronto Realty Boutique if you’re interested in learning how our roots in finance can get you exactly what you’re looking for in the Toronto Real Estate market. Simply fill out our form and we’ll be in touch right away.
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