Real Estate Monthly Market Update – March’2021

Buying real-estate is not only the best way, but the safest way to beat inflation and secure the future though it’s a complex process. Stats will save you from falling for the wrong or overrated price of the property that you’re planning to buy and remember always proper planning and preparation prevents wrong decisions and saves a lot of money and time.

Let’s have a look at the recent stats which were released by the Toronto Real-estate board for the month of Mar 2021. Three most important takeaways are:

1. Total Residential Transactions is up by 97% compared to Last year.
2. The Government of Canada has just announced that they expect to allow 1.2 Million people into the country over the next 3 years.
3. Interest rates are the lowest that they’ve ever been so it’s a wonderful opportunity that favors first time buyers to be getting into the market.

For the third straight month of 2021, record home sales continued in March across the Greater Toronto Area (GTA) with buyers taking advantage of favorable borrowing costs and continued improvement in many sectors of the economy.

Highlights from March 2021 include-

GTA REALTORS® reported 15,652 sales in March 2021 – close to double that of March 2020. While sales were strong, it is important to remember that for the second half of March we are comparing against the initial impact of COVID-19 in the second half of March 2020 when sales activity dropped off dramatically. With this in mind, it is important to consider annual sales growth for the pre-COVID period (March 1 to 14, 2020) and COVID period (March 15 to 31, 2020):

Year-Over Year Summary-

There were 6,504 sales reported during the first 14 days of March 2021 – up 41 per cent compared to the preCOVID period in March 2020.

Sales Activity and Average Price-

Over the same period, the average selling price increased to $1,097,565 from $902,787 (Mar 2020) While market conditions were tight throughout the GTA region in March, the detached, semi-detached and townhouse market segments in suburban areas were the drivers of average price growth, with annual rates of increase above 21.6 per cent in all three cases.

There were 9,148 sales reported between March 15th and March 31st 2021, an increase of 174 per cent compared to the COVID period of March 2020. This is a stark reminder of the initial impact COVID-19 had on the housing market and overall economy a year ago

For March 2021 as a whole, new listings were up 57 per cent year-over-year to 22,709. While representing a strong year-over-year increase, the annual growth rate for new listings was well-below that of sales.

The MLS® Home Price Index Composite Benchmark for March 2021 was up by 16.5 per cent compared to March 2020. Following the recent trend, low-rise home sales in regions surrounding the City of Toronto drove price growth.

Area Wise-

Apart from the overall real estate market trend, it is important to know the area wise trend as well to invest in the right place.