March Market Update
Thursday Mar 11th, 2021
2021 record home sale numbers continued in February, as buyers purchased almost 11,000 homes, 52% more than February 2020. Prices increase almost 15% over the same time period, and the average price in the GTA is now $1,015,392 up 9.2% over just 2 months ago! Condominiums in the 416 continued to be a hot commodity as 2,167 sold, 63% more than a year ago. As I pointed out in last month’s letter, 416 condos are a great buy, and as we move forward with the vaccine solution, foreign students, Air B and B demand and of course huge immigration will continue to drive price increases in all sectors of the housing market.
Prices in the GTA will continue to increase for the foreseeable future for several reasons, chief amongst them is lack of supply. Its guesstimated that annually we need 60,000 new residences to keep up to population growth, but builders can only build 40-50,000 annually. This shortfall will continue until the government speeds up their permit processes which currently take 3-4 years before a builder is allowed to build. The second factor to price increases is cost of construction. Materials such as steel, wood, roofing material have all increased by 15% this year alone,(as well as cost of labour) and that is reflected in higher prices.
Is it too late to buy? Have I missed the bus? Absolutely not! There are great values available. It’s a great time to upgrade your home, buy an investment condominium or perhaps, if you have children who will be going away to college, to buy a condominium for them to live in while they are away at school. Prices will continue to increase!
If you have any questions, lets talk. Let me put my experience and knowledge to work for you, to be part of the solution to secure you and your family’s future.
After all, you have a friend in real estate!
Have a great March!
Patrick Chung, Broker
Your Friend in Real Estate.
P.S. I am never too busy for your referrals!