Real estate is red hot in the GTA again. The stagnant market conditions with meager gains in price and demand momentum has now been replaced with surging prices, demand, and overall momentum.
Tembo has already noted that the psychology of the market has changed, and it is a far more confident space with greed and fear replacing complacency and lethargy. People are now once again weighing the potential gains of selling, and fear is driving people to jump in and acquire inventory that is scarce but that shows huge potential for equity growth.
What’s concerning to an extent is that inventories of housing are falling. The data shows a near 2% drop in what was available for consumers. People are holding on to stock with the expectation that price gains will continue. Big gains were seen i sales in Durham and York Region. Whitby, Oshawa, Richmond Hill, Newmarket and Vaughan all saw powerful surges in sold inventory. This highlights that Peel Region is maxed out in comparison (there are bidding wars for rentals in Mississauga these days), Halton was less desired than Peel, York, and Durham. Sales soared over 20% in Durham and York, with Halton and Toronto hitting 7%.
In terms of the types of inventory, detached sales are up over 18% in the GTA. Condo townhouses are becoming increasingly popular and combine a degree of affordability with more space than a tiny downtown box in the sky. Sales of condo townhouses grew by just under 16%. Condo townhouses are increasingly seen as the most positive balance of affordability and space in the GTA. In Mississauga, five of the most affordable neighbourhoods are Applewood, Meadowvale, Fairview, Mississauga Valleys, and City Centre. In almost all of these neighbourhoods, condo townhouses averaged $400-800K, whereas modest detached home prices averaged $800-900K.