Homebuyers in the Greater Toronto Area will have to gear up to spend more money than ever before. According to the Toronto Regional Real Estate Board (TRREB), the average selling price for homes in the GTA will top the $1 million dollar mark for the first time later this year.
TRREB predicts that by the end of 2021, the average selling price in the GTA will be $1.025 million, which is up from an average of $929,692 in 2020.
The current real estate market has reverted back to where the supply of listings coming onto the market is not keeping up with the growth in transactions . The transactions have been brought about by the unprecedented flurry of home purchases that pushed the number of sales up by 52% and the average selling price to nearly $1 million.
In January, TRREB reports that sales reached 6,928, a significant increase from the 4,546 homes sold in January of 2020. The average selling price was also up by 15.5% to $967,885, an increase from $838,087 in 2020, and the number of new listings also climbed to 9,430, a 20% increase from last year’s 7,848.
TRREB believes that new condominium apartment listings will slow towards the second half of the year and low-rise listings will remain constrained, while market conditions for low-rise homes, including detached houses, will remain very tight, with sales rising at a faster pace than listings.
Photo: Toronto Storeys