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Ontario Real Estate Market Update: August 2021

Despite the fall from last year’s record levels, August home sales in Ontario totaled the third-best month in history resulting in the average price of all homes increasing into the double-digits year over year. New and active listings are still at record lows, driving competitive conditions. 

The Ontario Real Estate Association (OREA) reports 20,578 residential transactions, coming in 2.4% above the five-year average.[1] Compared to the record-setting month of August 2020, sales were down 20%. [2] But this cool down was expected after unsustainable levels of activity last year.[3]

New residential listings totalled 24,690 across the province in August. This marked the lowest total in the month of August we’ve seen in the last 15 years. New listings dropped 31% year-over-year and 13% month-over-month, while active listings experienced similar double-digit declines. The shortage in supply drove the sales-to-new-listing ratio up 5% from last month, forcing the market farther into the sellers’ hands.

Like last month, the reduced supply did not affect the months of inventory which measures how long it would take to sell all inventory at the current rate of sales. The months of inventory increased marginally by 0.1% in August.

Overall, the average price of homes remained consistent month over month at $834,932. Year over year, the average price of a home in Ontario increased by 15%. Still, for buyers, it’s encouraging to see some slow down in month-over-month price increases.

More balanced conditions may be on the horizon.

In a seller’s market like Ontario’s, the guidance of experienced REALTORS® is an invaluable asset for both buyers and sellers. Speak to a local Purplebricks REALTOR® to learn about the latest trends in your region and discover how we can help you reach your real estate goals.

Toronto

Sellers tightened their grip on the Toronto real estate market in August, as the sales-to-new listing ratio increased by 7%. Both new and active listings are down a whopping 43% year over year, and down 18% and 13% respectively month over month. Toronto is experiencing tight market conditions and sustained competition from buyers as supply cannot keep pace with demand.

The Toronto Regional Real Estate Board (TRREB) reports [4][5][6]:

  • Market: Seller's Market
  • Sales: 3,003 (down 11% year over year and down 8% month over month)
  • New listings: 4,207 (down 43% year over year and down 18% month over month)
  • Active listings: 4,103 (down 43% year over year and down 13% month over month)
  • Sales-to-new-listings ratio: 71% (previous month was 64%)
  • Average days on market: 19 (up 19% year over year and up 19% month over month)
  • Average detached selling price: 1,674,641 (up 11% year over year and up 3% month over month)
  • Average semi-detached selling price: $1,214,624 (up 4% year over year and up 1% month over month)
  • Average townhouse selling price: $1,159,794 (up 6% year over year and down 1% month over month)
  • Average condo selling price: $720,832 (up 7% year over year and up 1% month over month)
  • All residential average selling price $1,000,008 (down 1% year over year and down 2% month over month)

Comments from TRREB Chief Market Analyst Jason Mercer: “Sales have accounted for a much higher share of new listings this year compared to last, and the story was no different in August. There has been no relief on the supply side for home buyers, in fact, competition between these buyers have increased."

Peel

Peel like Toronto, moved into a stronger seller’s market in August. New and active listings were down 45% and 54% respectively, but average days on the market stayed consistent with the previous month. While the shortage in supply continues to keep demand high in most regions across Ontario, the average residential selling price increased 16% year over year and 3% month over month.

The Toronto Regional Real Estate Board (TRREB) reports[7][8][9]:

  • Market: Seller's Market
  • Sales: 1,805 (down 22% year over year and down 9% month over month)
  • New listings: 2,064 (down 45% year over year and down 16% month over month)
  • Active listings: 1,285 (down 54% year over year and down 19% month over month)
  • Sales-to-new-listings ratio: 87% (previous month was 81%)
  • Average days on market: 13 (down 7% year over year and at par month over month)
  • Average detached selling price: 1,378,733 (up 24% year over year and up 1% month over month)
  • Average semi-detached selling price: $962,123 (up 20% year over year and up 3% month over month)
  • Average townhouse selling price: $881,517 (up 18% year over year and up 2% month over month)
  • Average condo selling price: $580,626 (up 10% year over year and up 2% month over month)
  • All residential average selling price: $1,039,500 (up 16% year over year and up 3% month over month)

Comments from TRREB Chief Market Analyst Jason Mercer: “As we move toward 2022, expect market conditions to become tighter as population growth in the GTA starts to trend back to pre-COVID levels."

Ottawa

Ottawa experienced similar conditions to other parts of Ontario, with average prices for condos and residential properties rising year over year. Sales remained consistent, experiencing single-digit declines of 2% year over year and 9% month over month. Limited supply continues to drive prices up and tighten conditions.

The Ottawa Real Estate Board (OREB) reports[10]:

  • Sales: 1,572 (down 22% year over year and down 9% month overmonth)
  • Number of condominium-class properties sold: 397 (down 9% year over year and down 4% month over month)
  • Number of residential-class properties sold: 1,175 (down 25% year over year and down 10% month over month)
  • Average condo selling price: $407,148 (up 6% year over year and down 3% month over month)
  • Average residential selling price: $674,449 (up 14% year over year and down 2% month over month)

Comments from OREB President Debra Wright: "The reason we see a sharp decrease compared to last year’s numbers is due to the first wave lockdown in spring 2020, which shifted that market’s peak to the summer and fall months [...] Supply continues to remain scarce, and that is the driving factor behind these price increases.”

Hamilton-Burlington

The Hamilton-Burlington region is still a seller’s market, with the sales-to-new-listing ratio increasing by 2% since last month. Sales were down both 5% month over month and year over year. The average price of all homes increased a whopping 21% from August 2020 and only fell 1% compared to July 2021. Critically low inventory continues to put a strain on this region.

The REALTORS® Association of Hamilton-Burlington (RAHB) reports[11]:

  • Market: Seller's Market
  • Sales: 1,201 (down 5% year over year and down 5% month over month)
  • New listings: 1,279 (down 15% year over year and down 9% month over month)
  • Sales-to-new-listings ratio: 94% (previous month was 92%)
  • Average selling price in Hamilton: $779,486 (up 18% year over year and at par month over month)
  • Average selling price in Burlington: $1,046,652 (up 21% year over year and at par month over month)
  • Average selling price in Niagara North: $862,675 (up 31% year over year and down 2% month over month)
  • Average selling price in Haldimand County: $807,923 (up 45% year over year and up 14% month over month)
  • All residential average selling price: $839,881 (up 21% year over year and down 1% month over month)

Comments from RAHB President Donna Bacher: “In line with seasonal trends, July and August tend to have fewer new listings and sales which is exactly the case here…Even though we have fewer active listings and sales, we are also seeing a slight dip in the average sale price. Overall, the same story continues and that is that the level of inventory remains at critical low levels. We definitely need more supply on the market.”

Niagara 

It’s still a seller’s market in Niagara! Currently, demand outweighs supply driving average year-over-year prices for all residential properties up 36%. The number of sales remained virtually consistent with the previous month, falling 1% from July 2021 and 2% from August 2020. Some cooling over the past few months do point to potentially more balanced conditions in the future.

The Niagara Association of REALTORS® (NAR) reports[12]:

  • Market: Seller's Market
  • Sales: 740 (down 24% year over year and down 1% month over month)
  • New listings: 872 (down 24% year over year and down 12% month over month)
  • Sales-to-new-listings ratio: 85% (previous month was 76%)
  • Average days on market: 20 (down 44% year over year and at par month over month)
  • Benchmark price for a home in St. Catharines: $619,800 (up 37% year over year and up 1% month over month)
  • Benchmark price for a home in Niagara Falls: $605,700 (up 36% year over year and at par month over month)
  • Benchmark price for a home in Welland: $527,600 (up 33% year over year and at par month over month)
  • Benchmark price for a home in Fort Erie: $545,800 (up 33% year over year and up 2% month over month)
  • Overall benchmark price for a home in the Niagara Region: $657,400 (up 34% year over year and up 1% month over month)

Comments from NAR President Doug Rempel: “Last year was different because of the pandemic lockdown, we experienced the “spring market” in June and July. It’s still a seller’s market. There are still plenty of buyers out there and demand still outweighs supply but there has been some cooling over the previous month, and a slight shift away from a tight seller’s market to a more balanced model is emerging.”

If you need to sell or buy a home, a local Purplebricks REALTOR® can help you navigate the market safely and with professional insight. Purplebricks supports Canadians by providing full-service real estate experiences with incredible rewards: sellers save thousands in commission and buyers receive $2,000 cash back* when they purchase a home with one of our REALTORS®. Call 1-855-999-9740 to learn more. 

Randall Weese is the Director of Compliance and Brokerage Services at Purplebricks, where he is also the licensed Broker of Record for Ontario, Broker for Alberta, and Associate Broker for Manitoba. A REALTOR® with 14 years’ experience in Ontario, Randall has worked in a variety of business models within the real estate industry. He has been a REALTOR® at one of the largest brokerages in Canada, managed a boutique brokerage, and founded and operated his own brokerage in the Greater Toronto Area. Throughout his career, he has acted as a listing agent on thousands of homes across the country.

 

 

Statistics presented herein are rounded to the nearest whole number for readability. Exact statistics can be found using the references provided. The Canadian Real Estate Association calculates benchmark prices using the MLS® Home Price Index (HPI), which uses data from a region to define a “typical” home. Benchmark prices can reflect the changes to a region’s property value far more accurately than average or median prices.