A new report from RE/MAX called the Hot Pocket Communities Report tracked 60 Toronto Regional Real Estate Board (TRREB) districts found that “inventory constraints propelled demand throughout the GTA and set the stage for unprecedented market performance.”
RE/MAX Canada found appreciation in detached housing values was was met with a significant upswing in sales volume between January and June of 2021.There were 11,297 active listings, this was the lowest level for June in at least a decade and down 35 per cent from the 10-year average of 17,260, surpassing the previous low of 12,327 reported in June of 2016.
When compared to the same period last year, unit sales more than doubled in York Region (109.6 percent), while Peel and Central Toronto posted gains of 98.2 and 96.7 percent, respectively.
Sales increases across the GTA ranged from a low of 33.3 percent in the East End’s Wexford-Maryvale, Clairlea-Birchmount, Kennedy Park, Ionview and Dorset Park (E04) community to a high of 175 per cent in Dufferin Grove, Little Portugal, Trinity-Bellwoods, Palmerston-Little Italy, Niagara, University, Kensington-Chinatown, Bay St. Corridor, and Waterfront Communities (C01) in the Central Core.
“Halfway into 2021 and the GTA’s housing market continues to fire on all cylinders,” says Christopher Alexander, Senior Vice President of RE/MAX Canada. “Overall home sales topped 70,000 between January and June, the strongest first half in the history of the Toronto Regional Real Estate Board, while values smashed through record levels set in previous years. Without a serious influx of new listings to ease the upward pressure on pricing in the coming months, the market will likely continue on this upward trajectory.”
Uxbridge experienced the largest growth with detached home prices there increasing by 46.4 percent with a price of $1,365,983. Scugog followed with an increase of 43.9 percent to $986,878. King saw house prices rise by a change of 40.2 percent to $2,179,739.
Other outer-lying GTA cities like Brock, Pickering, Clarington, Oshawa, Caledon, East Gwillimbury, Whitby, Banbury-Don Mills, and Milton all saw increases in detached home prices.
With interest rates at historic lows, first-time buyers are scrambling to get into the market.
“More transit options and hybrid work schedules have made relocation to the city’s outlying areas even more attractive,” said Alexander. “First-time buyers are feeling the squeeze but are still determined to become homeowners, with many happily travelling further afield to make it happen while working from home. The beneficiaries of the trend have been suburban communities in Durham, Peel, Dufferin County and the most northern part of York Region.”
“Without a serious influx of new listings to ease the upward pressure on pricing in the coming months, the market will likely continue on this upward trajectory,” Alexander said.