by Nutan Brown
on Monday, February 8th, 2021 at 9:36am.
As the first month of the New Year comes to an end, we get a glimpse into 2021 and what the Toronto housing market has in store. Despite the cold weather, January came in hot with a total of 6,928 monthly transactions, representing a year-over-year increase of a whopping 52.4% in sales.
While this number might seem big, we have to consider that real estate activity, particularly over the last few months, has been abnormal. For example, as stated in our market update for November 2020, a record number of homes were sold in October which represented a 25.1% increase from the previous year. This trend continued into November and December to close out the year.
Interestingly, the number of sales wasn’t the only indicator that showed Toronto’s real estate market is heating up.
The average price of a home in Toronto was $967,885, an increase of 11.1% compared to the average price of a home last year. Freehold and specifically detached properties are in the highest demand in Toronto right now.
The condo market is another interesting area to keep an eye on, since it was hit especially hard by the pandemic. To close out the year, the average price of a condo in Toronto dropped slightly year-over-year by roughly 2%, but condo sales increased 75%. This shows that buyer demand is absorbing standing inventory, and that the rebound in the condo market has started.