September Supply Shortage
September marked the transition from the slower summer market to the busier fall market in the in the Greater Toronto Area. Every year, we generally see an uptick in sales, average selling price and listings after Labour Day, and September 2021 was no different. September’s 9,046 sales was an increased relative to August and was also the third most active month on record for the month of September. The average selling price for the month was $1,136,280 which brought up the average sale price to $1,079, 381, and an overall increase of 16.1% from the start of the year.
With only 9,191 homes for sale on the Toronto Real Estate Board, means prices will increase as demand continues to put pressure on the limited supply.
Despite the lack of available properties for sale there are still great opportunities to buy a home or an investment property.
As the above chart indicates, condo apartment prices have lagged behind other types of property due to the fact that Covid kept foreign students and visitors who would utilise AirBnB out of Canada. This created a temporary over-supply and that kept price increases to a moderate level. That is slowly changing as Toronto returns to normalcy. I believe we’re going to see the condominium market rebounding at a faster rate due to supply and demand.
Buying an investment property is a smart move. It’s a question of preparing for the future so that you will have a source of income in your golden years. If you’d like to explore this concept a little bit further, please contact me and if you know of somebody who’s thinking of buying or selling I would appreciate the referral. I’m never too busy to look after you and the people you care about.
Have a great October.