Hello friends,
 

What a welcome relief it is to watch the streets of Toronto re-awaken as we see outdoor patios filled with happy patrons and customers wandering into local shops. I believe we are in for a wonderful summer ahead as the city continues to prioritize it's vaccine efforts. 

Our May 2021 real estate market continued a two month trend of plateauing. While March 2021 saw a record breaking number of sales in the GTA (over 15,000), April came in closer to 13,000 units sold and May had approximately 11,000 transactions. Our expectation is that June will ultimately see about 10,000 sales.  Having crested in March, we are pleased with this moderation in the market.  Average sale prices remain exceptionally strong but the dynamics of the market have shifted.  Buyers have pulled back from the frenetic pace of early spring when we could see hundreds of  showings on a single property and 25 or more offers.  We are watching more listings being cancelled when their low offer price (intended to stir up bidding wars) didn’t bear the expected result and re-listed at  fair market value.  The average sale price in Toronto shifted down slightly from a high of $1,126,266 for the week of June 7th to $1,113,723 for the week of June 14th.  We expect these market conditions to continue for the balance of the summer before an expected autumn up-tick in September.

If you are considering a real estate sale or purchase in 2021, or if you are just wondering how the market as a whole impacts your personal investment, please reach out - I would love to chat. 

Our inbox is the gateway to our work and personal life. I know how important it is for all of us to try and curate our email content so that it is both manageable and enjoyable. If at any time you would rather not receive this newsletter, you can opt out by unsubscribing per the link at the bottom of this email with no hard feelings!  As always, stay safe and we look forward to seeing you all again very soon.  
 

Thank you for reading,

The Toronto and area residential resale marketplace continued its slide towards a more normal but still very strong market. In May 11,951 properties were reported sold, a decline of more than 12 percent compared to the 13,650 properties reported sold in April, and a decline of more than 23 percent compared to the record breaking, stratospheric 15,646 properties sold in March. March’s numbers were, I believe, the zenith of the pandemic market, just before Ontario’s vaccination program was rolled-out. Notwithstanding these declines, the market remains very strong by historic standards and May’s average sale price of $1,108,453, which includes more than 2,700 condominium apartment sales throughout the region, is an all-time record. May’s average sale price was almost 30 percent higher than last May’s average sale price of $863,583. In absolute dollars, a stunning increase of $245,000 in just 12 months. This record-breaking average sale price is clearly stretching the affordability limits of Toronto and area buyers.

Although the number of sales declined over the past two months, the pace of sales did not. In May it took only 11 days for all properties that came to market to be reported sold. At the end of May there were only 1.2 months of inventory for the entire greater Toronto region. The number was a little higher in the City of Toronto (1.6 months) due to the preponderance of condominium apartments in the City.

Condominium apartment sales have surged during 2021, and although comparison to 2020 (at least until the month of June) are not meaningful, in May the 1,881 condominium apartment sales recorded in the City of Toronto were almost 160 percent higher than last May’s results. With this surge in sales, sale prices for condominium apartments have also increased. The average sale price for condos in the City of Toronto came in at $716,976, a 6.3 percent increase compared to last year. In the City’s central core, where most of the region’s condominium apartments are located, the average sale price came in at $766,462, making Toronto’s least expensive housing form fairly pricey.

The price of detached and semi-detached property sales in the City of Toronto reached eye-popping levels in May. The average price for detached properties came in at $1,716,272, and $1,326,153 for semi-detached properties, increases of 20 and 16 percent respectively compared to last year. Average sale prices in the 905 region were not as high - $1,331,176 for detached properties, and $915,479 for semi-detached homes – however, from a percentage standpoint they exceeded the increases in the City of Toronto. In the 905 region detached property sale prices increased by 41 percent while semi-detached increased by 28 percent over the same period last year, a reflection of buyers fleeing to the suburbs, seeking more space and a sense of safety, at prices for less than can be found in the City of Toronto.

Affordability and supply will continue to moderate the Toronto and area marketplace as we move towards the second half of 2021. The region’s average sale price of $1,108,453 is making Toronto and area very pricey, and except for condominium apartments, beyond the reach of most buyers. To some extent that has been one of the reasons for the pull back in the market since March. Affordability has  become even more relevant as the higher mortgage stress tests are now in place as of June 1st.

In May 18,586 new listings came to market. Sellers were clearly taking advantage of the record-breaking selling prices. The growth of the Toronto and area inventory levels will have a moderate impact on average sale prices, as stretched buyers discover that they have more choice than during the early months of 2021. The combined impact of tighter affordability and more inventory should see the marketplace continue to level off, consistent was “normal” pre-pandemic markets.

The President of Chestnut Park, Chris Kapches, has provided a wonderful overview of the May market.  Please click on the link below to hear Chris’ summary.

Now more than ever, it is vital that we continue to support small local businesses. From time-to-time, I highlight some of my favourites and will continue to do so until we return to our ’new normal’. Please consider reaching out to these wonderful entrepreneurs - I know you won’t be disappointed. 💕

Rachel Wolkoff started Lollipots 20 years ago and my children are very thankful that she did!  Her creations sit on the table at most of our celebrations and are always received with great happiness.  Here is Rachel’s story:

"I started Lollipots 20 years ago. My inventory was mostly handmade lollipops planted in hand painted terracotta pots (Lollipots)! I was very active for a few years, making centre pieces and going to sell my wares at all the local craft shows. Unfortunately, being a stay-at-home mom with 3 young kids, didn't allow for me to continue. Flash forward to Oct 2019. With the encouragement of my now grown children, I started Lollipots up again, but this time there was social media, and I introduced my Kitkat boxes and boards to my inventory!  It has been such an amazing 1.5 years! I work with each customer to make sure they are getting something that is personalized just for them. I am truly blessed to have a job that brings huge smiles to the recipient's face! Please follow me on Instagram @lolli.pots. Thank you!"

I have been ordering cakes from Sharon for several years now - for special occasions and everyday enjoyment too. While many bakers create visually stunning cakes, Sharon’s masterpieces always taste as delicious as they look! With inspiring flavours like caramel apple (our favourite), buttery banana and nutty pistachio, it will definitely be a “diet starts Monday” indulgence.  She is a graduate of Canada's premier art and design school, OCAD and her talents are clearly evident in her designs. You can find Sharon on instagram @bloom_cake_co or via email info@bloomcakeco.com. The last picture was done for my son Cole’s acceptance to Queen’s Commerce.  It truly tasted as great as it looked.  
 

We are thrilled to announce that nurse Tory won our #healthcareheroes instagram giveaway!  Working in tandem with Sachi Co Gifts, we filled a gift box with beautifully curated treats to pamper those for whom the last eighteen months have been so challenging. We added in a $200 Uber Eats card - because who wants to cook after a long shift at the hospital! 

Tory has worked as an operating room nurse at Mt Sinai hospital in Toronto for five years. At the height of the pandemic, the need for available hospital beds increased significantly. As a result, surgeries were often delayed or cancelled with surgical staff redeployed to assist with ICU needs. Tory and her colleagues not only rose to the challenges they faced but did so with compassion and top quality care. We salute and thank Tory and all of our #healthcareheroes!