Toronto Real Estate Market Update February, 2021

The real estate market in Mississauga and the Greater Toronto set another record in January of 2021. Over all, sales were up over 60% compared to the same time last year and prices were up 15% for all home combined.

The biggest gains for home sellers were found in the single family segment in the suburbs, where some areas posted 30%+ increases year over year. This trend of of buyers moving from the city to suburbs such as Oakville has continued from 2020.

Check out this article for buyers looking to move from Toronto to Mississauga.

While condos continued to underperform compared to houses, there may be a silver lining for the Downtown Toronto market. While prices have been stagnant and even gone down in some areas, sales were up which could hint that a rebound is not too far off.

Check out my video on why I remain confident in Toronto Real Estate Market Prices in the future, and why you should too!

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Transcript: Is the Toronto Real Estate Market Heating Up too Fast?

Well here we are, another record-breaking month for Toronto Real Estate in January 2021, we reported over 50% more sales than the same time last year

the market has continued to be red hot, and continued where we picked off the year before and that’s because of a low inventory and high buyer demand. 

When we look at the pricing side of things, prices for all properties have gone up on average over 15% in the GTA 

and when you break it down by different areas you can see certain areas have gone up even way more reflecting the trend of people still continuing to leave the core and go out into the suburbs in order to find single detached family homes

Now as I’ve been predicting in my previous videos and since the summer time of 2020 this trend will continue because we do have a lack of inventory in our market 

not enough supply coming online and I still think you’re going to see tight market conditions for some time to come now before we get into the numbers let’s take a look at what’s going on in the news

The big story in real estate this week is that the average house price in Toronto is expected to surpass $1,000,000 by the end of 2021

When you look at the article, I’ll quote, “we reverted back to the scenario that really we’ve been talking about a lot over the past number years where supply of listings coming onto the market is not keeping up with the growth in transactions.”

As I’ve been saying and I’ve made multiple videos on it including my prediction on why house prices will continue to rise in the Toronto area 


this all comes down to a number of factors such as population growth in the city, lack of inventory, lack of new builds being built 

consumer preference for actual houses as opposed to condos 

and basically what this is adding up to is a perfect scenario 

where house prices will continue to rise in the future 


I mean our banks are heavily invested in it, and our real estate market is quite heavily regulated 

which means that somehow, someway, this market continues to pump along 

now also keep in mind that the GTA is the most diverse, economically strong engine in the country

that attracts a lot of people into the area so without solving the problem of how many properties we can get online and housing these people


We’re always going to have a housing shortage, and when you have more demand than supply available, then the law of economics will always dictate that prices will always continue to go up

Until that factor changes, we’re not going to see a change


Sure, we can see a bit of market cycling, periods of very high growth followed by maybe slower times, maybe a little bit of a decline

But when you look at real estate over the macro in the long term

The trend will continue to go up until there’s no longer any demand for homes in the GTA


Next let’s talk about the confusion in the market 


The Toronto Star posted a recent article talking about how home prices are surging and the market’s doing really well 

but then three weeks ago they posted an article talking about how CMHC predicts a 15% drop in home prices 

like if you’re the one that reads every news article out there or follows the news 

you don’t know what to think 

I mean even RBC, their own executives were telling their investors that real estate prices in Canada we’re going to go down 

yet their economists are predicting prices are going to go up 

I think a lot of people, they tend to look at real estate through their lense 


so, if you’re a banker, you’re looking at it in terms of interest rates are the only thing that drive this 


or if you’re looking at development, you’re looking at “well if we’re not building enough, that’s what drives prices”

At the end of the day there’s a number of things affecting it from interest rates, 

population demographics, future growth to even environmental policies 


everything that the government does, every decision that’s made has a ripple effect on real estate 

and sometimes it’s hard to see it at the time, an idea that sounds good at the time 

could actually have large implications in the future 

my guess is that until the supply issue is solved in the GTA 

we’re probably still going to see continuing rising prices with periods 

where maybe the market slows down. whether is government regulation 

or a bit of a hiccup and a reset 

but overall I still think we were into it for the long term.


All right let’s get into the numbers 

So when we’re looking at real estate, again the 905 was the big winner in terms of sales and price appreciation 

when we look at the chart you can definitely see right away that when comparing a detached house in the city of Toronto which went up I’m very good 16% 

it’s nothing in comparison to the 36% year-over-year increase that we saw with detached houses in the 905

Again, this is reflecting people selling smaller properties in the city 

to move out to the suburbs to get more room 

when we look at more modest properties such as semi-detached

You can it more or less in line with each other

With Toronto at 21% and the 905 at 25% 

again we look at townhouses, you can see that Toronto’s prices actually did not go up a lot 

only 4.1% year-over-year while in the suburbs they were up 20% 

now when we get to condos you can see that in the city of Toronto the prices are actually down because the highest concentration of condos is in the downtown core 

which was hit the hardest by coronavirus however in the 905 

condos have gone up a modest 5% 

which doesn’t look good when you compare it to single family residence but still doing quite well compared to the city counterpart 

one thing I will say about condos is we are seeing an uptick in sales even in the city of Toronto

and this may be signalling the bottom has come for the Toronto condo Market 

eventually if the single family houses get too expensive and we’re hitting affordability issues then people again will start to go towards condos in order to find home ownership 

so that is a trend that I would definitely keep an eye on in the future and especially through the spring and summer

Well there you have it, I hope you enjoyed by February 2021 

Greater Toronto real estate market update 

as you can see consumer confidence is very strong in real estate

especially in the 905 area 

when we’re looking at what’s going to be happening over the spring and summer of 2021 

things to keep an eye on include this continuing migration out in “The Burbs” 

will the prices continue to keep rising higher than in the city of Toronto 

and also let’s keep an eye on the Toronto condo Market 

which I personally believe has probably hit its bottom 

and it’s going to slowly start to make a comeback 

either way it’s going to be exciting year and if you have any questions about Real Estate 

always feel free to call or email me 

I’m Jeff O’Leary “The Village Guru” have yourself a great day!