The Toronto real estate market levelled off in June, particularly compared to red-hot March, but the condo market continues to see gains. That’s according to TRREB (Toronto Regional Real Estate Board) Market Watch.
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June home sales were up compared to June 2020, which is not a surprise, but were lower than the number of transactions reported in May. In their summary just released, TRREB reports 11,106 sales in June (11,951 in May), up 28.5 per cent compared to last year. The average home price across all housing categories was $1,089,536, up 17 per cent year over year. The average price in May was $1,108,357.
Are bully offers still as commonplace?
Back in those heady market days of March (more than 15,000 homes were sold that month), bully offers were the rage. A bully offer is a pre-emptive strike when the buyer ignores the seller’s set timeline to review offers and submits an aggressive early offer in the hopes of not having to compete.
To buy in Toronto, you needed to go in fast with your maximum offer. Factors like low cost of borrowing and limited inventory were driving the frenzy. Many a dream home was lost to bully offers or bidding wars. A buyer needed to get head of the competition and make an offer the seller couldn’t refuse.
Onset of immigration should boost the market again
The sale of homes in the Greater Toronto Area priced over $2 million dipped from 794 in May to 699 in June.
“We have seen market activity transition from a record pace to a robust pace over the last three months. While this could provide some relief for home buyers in the near term, a resumption of population growth based on immigration is only months away. While the primary focus of policymakers has been artificially curbing demand, the only longterm solution to affordability is increasing supply to accommodate perpetual housing needs in a growing region,” says TRREB president Kevin Crigger.
Condos continue strong performance
Sales growth was strongest in the condo market, according to TRREB, both in Toronto and the surrounding suburbs. In June, 23 condos in the GTA priced over $2 million sold, compared to 16 in May. Overall, 2,800 condos sold last month, compared to 2,710 in May.