Hello Incredible Malcolm’s Choice Community,
I hope you are enjoying this fall season, furthermore, I hope you and your family have a safe Thanksgiving/ long weekend.
The kids are back in the swing of things at school, the traffic seems crazier than ever and the residential real estate market continues at its busy pace.
These are all good things as we navigate the pandemic. If we merely take a moment to reflect where we were last year at this time, Thanksgiving was something that the government was asking us to consider only having our individual household involved in. There is a much-needed sense of relief that we are turning a new page.
With everyone settling into Fall and many getting back into the GTA from the summer holidays the residential real estate market continues at a pace not seen in years, as inventory levels are at an all-time low. Simply said we are at a point where The Greater Toronto Area needs more homes, of all types, to sell, furthermore beyond the GTA is also seeing extreme demand as buyers are looking far and wide in order to get in the market at a reasonable price.
Available homes for sale are down almost 50% from this same time last year. I have spent a lot of time talking with eager buyers who are looking to get into the market. Their biggest question is why are we so short on inventory? Although there are various factors that are playing a big part in the inventory shortage including in that is; the cost of materials, immigration but by far the biggest factor is the number of sellers that prematurely sold in the first quarter of 2021.
In Q1 of 2021, a lot of sellers took advantage of the incredible seller’s market we were in to capitalize on the massive demand and the rise in sale prices. Statistically, a majority of these sellers would not have sold at this time but opted to in order to cash in on the profits that the demanding market was able to provide. A good percentage of these sellers would have been in the market on a more consistent basis later in the year but because they weren’t, we went through a much heavier ratio of sales in the first few months of the year. With demand remaining strong, prices have increased by just over 18% when comparing September 2021 to September 2020.
Sub-markets like Brampton and Durham Region are seeing inventory levels down over 60% and 40% respectively, leaving the months of inventory at approximately just two weeks. If no further listings were taken in those areas they would be sold out of homes in just fourteen days. To put these figures into perspective, in a healthy market on average it takes +28 days to sell a home in the GTA. Sadly we haven’t been in a balanced market like that in some time.
The condominium market is busy with the number of sales up over 12% and prices up over 11% when comparing September 2021 over September 2020. Condominiums continue to thrive due to condos being a more affordable option to enter the market.
The new construction market also continues to thrive as developers are coming up with new and innovative ways to make condominium living more family and lifestyle friendly. Developers are elevating the traditional condo playrooms for children, study and meeting rooms for students and those who work from home, state of the art gyms and other amenities that are making condo life more attractive than ever.
Below you will find just some of our market stats from across the GTA that numerically paint a great picture of what is going on in each region around the city. As always I’m happy to address all your real estate questions. Know that I am only a phone call, text or email away. It’s Important to be well informed in our current market so you can make the best decisions for yourself and your family. With that said I do a complimentary virtual Micro-market update to give you a precise look at what is going on in your localized community. This is the most valuable insight because with the ebb & flow of the real estate market your home value could have drastically changed based on the sales around your home. Give me a call & I’ll be happy to let you know everything that has occurred in your area.
It is my absolute pleasure connecting with you and I look forward to speaking with you soon.
Royal LePage Signature Realty