RE/MAX 2021 GTA HOT POCKET COMMUNITIES REPORT
A steady decline in the supply of single-detached housing in the Greater Toronto Area (GTA), coupled with mortgage rates hovering well-below three per cent, hastened demand from first-time homebuyers and galvanized the city’s move-up market in the first half of 2021, according to a new Greater Toronto real estate report released today by RE/MAX Canada.
The RE/MAX 2021 GTA Hot Pocket Communities Report examined trends and developments in 60 Toronto Regional Real Estate Board (TRREB) districts, finding that inventory constraints propelled demand throughout the GTA and set the stage for unprecedented market performance. With 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. As a result, the average price for single-detached homes soared, with values in almost 97 per cent of TRREB communities well-ahead of year-ago levels, with nearly half reporting an increase of 25 per cent or more compared to the same period in 2020. The top 10 performers in 2021 in terms of year-over-year price appreciation ranged from 34.2 per cent in Milton (Halton Region), to a high of 46.4 per cent in Durham Region’s Uxbridge this year.
With interest rates at historic lows, first-time buyers are scrambling to get into the market before home ownership is beyond their financial reach. However, affordability challenges continue to be exacerbated by the supply crunch. Of the 60 TRREB communities examined in the RE/MAX 2021 Hot Pocket Communities Report, only six offered single-detached homes under the $1 million price point. This is compared to 18 communities during the same period in 2020, and 28 in 2019. All six markets were located in the 905-area code.
“More transit options and hybrid work schedules have made relocation to the city’s outlying areas even more attractive,” explains 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.”
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