June Market Update
June 2021 – a story of
June market saw a change from record breaking to robust market conditions.
With pent up demand satisfied, new stress test implemented and stalled immigration the numbers settled.
There were 11,106 property sales reported last month across the GTA with the average price across all property types coming in at $1,089,536.
Both the number of sales and average price reflect a transitioning of market activity over the past three months from a record pace that peaked in March 2021 to a more moderate yet robust pace in June.
June 2021 was the first month under the new stricter mortgage stress test imposed by the federal government. This may have had a slight cooling effect on activity, but the drop in pace of sales is more likely reflecting that in the absence of normal population growth due to stalled immigration, a pent-up demand has been satisfied, as TRREB Chief Market Analyst Jason Mercer suggests. As TRREB President, Kevin Crigger points out, “A resumption of population growth based on immigration is only months away.” This anticipated influx and its associated housing demand will have an impact on the GTA market and may in part be informing the update to TRREB’s 2021 market forecast that has been revised upward from the initial 105,000 transactions to 115,000 transactions for the year. The forecast average selling price has also been revised upward to $1,070,000 from $1,025,000