September marked the transition from the slower summer market to the busier fall market in the Greater Toronto Area. Every year, we generally see an uptick in sales, average selling price, and listings after Labour Day. September 2021 was no different. September saw 9,046 sales, a moderate 5 per cent increase from August and was also notably the third most active month on record for the month of September ever. The average selling price for the month was $1,136,280 which is an increase of 18.3 per cent from the start of the year!
So what’s causing this continued increase in sale prices? The months of inventory (number months needed to sell all the homes currently on the market) is at the lowest I have ever seen in my career. On TRREB, for all home types, we are sitting at 1.4 months of inventory. A balanced market is considered to be 4-5 months, while the City has been at the 3-4 month level for a while. We are clearly in an intense seller’s market!
Demand for premium properties has been intense with close to 6,100 properties changing hands over the $2-million price point in the GTA to date, an increase of 127 per cent over the same period in 2020. I expect the rest of the year to continue on its current trajectory and will be fuelled by increased travel from foreign buyers, more immigration, the re-emergence of the condo market, strong economic fundamentals, and incredibly low borrowing costs.
Though overall prices should steadily rise, there are always rare sales that are outliers that completely outperformed the market. That comes back to the timing and strategy executed, and where I excel. So if you are considering making a move, feel free to reach out to me. I’m never too busy to talk real estate and offer my advice.
All the best
Barry
