07/14/2021
According to the Royal LePage House Price Survey released today, The aggregate price of a home in the Greater Toronto Area increased 18.2 per cent year-over-year to $1,035,000 in the second quarter of 2021. Broken out by housing type, the median price of a single-family detached home increased 28.2 per cent to $1,301,000, while the median price of a condominium increased 8.6 per cent to $630,000 during the same period.
"Until a real solution to the chronic housing supply shortage is implemented, prices will continue to rise," said Karen Yolevski, chief operating officer, Royal LePage Real Estate Services Ltd. "We may see a slight slowdown over the summer, but demand is expected to rise again in the fall with the return of students to in-person learning, the revival of the tourism and hospitality industries, and an increase in immigration. That demand will increase competition and continue to push prices upward."
In the city of Toronto, the aggregate price of a home increased 8.3 per cent year-over-year to $1,115,000 in the second quarter of 2021. During the same period, the median price of a single-family detached home increased 14.8 per cent to $1,550,000, while the median price of a condominium increased 5.8 per cent to $695,000.
Yolevski added that while the pandemic has driven demand in the suburbs and rural areas, the return to normal socialization habits will once again draw Canadian home buyers to the city centres.
"Young people will always be drawn to the downtown core. The walkability, access to restaurants and entertainment, and the diversity of different neighbourhoods will once again become top priorities for potential buyers once the fear caused by the pandemic diminishes," noted Yolevski.
Toronto City Council is currently reviewing a report outlining possible revenue tools, including an increase to the land transfer tax on homes valued at $2 million or more. Royal LePage president and CEO, Phil Soper, says that in a city where homeowners already pay two land transfer taxes, one to the province and one to the municipality, any increase would only exacerbate the region's inventory shortage issue.
"Land transfer taxes restrict the free movement of people and businesses, and have the ability to damage the city's economy," said Phil Soper, president and CEO of Royal LePage. "An increase to the tax could further reduce the already paper-thin supply of housing in Toronto, by preventing people from choosing to move for a better job or quality of life."
Royal LePage is forecasting that the aggregate price of a home in the Greater Toronto Area will increase 14.5 per cent in the fourth quarter of 2021, compared to the same quarter last year.
