If you want to purchase a house in Brampton this year, you’ll face a hot market rife with competition and marked by sky-high prices.
According to data recently released by the Toronto Regional Real Estate Board (TRREB), the average house price in Brampton hit $1,026,255 in March 2021.
In a news release, TRREB said that the average home price in the overall Toronto and GTA market climbed by 16.5 per cent year-over-year to hit almost $1.1 million, while home sales soared by 97 per cent to reach 15,652.
TRREB president Lisa Patel interpreted the numbers as a sign that consumer confidence has returned to the market and low mortgage rates are encouraging sales, but warned that they also spell trouble.
“While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability,” she said in a release.
As for Brampton, real estate website and brokerage Zoocasa said that home sales were up by 108 per cent compared to March 2020 with 1,599 homes trading hands during the month. The average price of a home in Brampton rose 27 per cent from last year, now $1,026,255.
Zoocasa said the average price of a detached home in Brampton grew 31 per cent annually to $1,214,773, while both semi-detached and condo townhomes grew 19 per cent to $900,000 and 21 per cent to $683,301 respectively. Condo apartments had slower price growth of 7 per cent, hitting $492,209.
“Brampton’s Sales-to-New-Listings-Ratio is 65 per cent, meaning for every 10 properties listed 6.5 will sell on average. While this is still classified as a seller’s market, competition isn’t as fierce as other west-end communities, where the ratio is over 70 per cent. This offers more opportunity for buyers,” said Zoocasa CEO Lauren Haw in a statement.
Zoocasa said all property types in Brampton have seen a significant year-over-year increase in sales volume, and with the exception of condo townhomes, sales were up more than 98 per cent. Detached homes led this growth with 871 sales (up 118 per cent) followed by condo apartments with 89 sales (up 102 per cent), then semis with 323 sales (up 98 per cent). Condo townhouses also strong growth with 115 new sales last month (up 67 per cent).
“March of 2021 has been a record-breaking transaction month in the GTA region,” Haw said.
“This month we saw a massive increase in completed deals but also a 23.5 per cent decrease in property days on market. This is echoing the high demand and lower listing supply that we’ve been seeing throughout the first quarter of 2021 and the increased speed at which properties are selling.”
While some of the dramatic sales and price growth can be attributed to favourable borrowing conditions, TRREB said COVID-19 was also affecting year-over-year comparisons.
Almost 8,000 GTA homes with an average price of $902,787 changed hands in March 2020, when the first economic effects of the pandemic materialized and both buyers and sellers were wary of the market.
A year on, available inventory hasn’t caught up to the number of people seeking new homes, putting pressure on prices.
The number of listings grew by about 57 per cent to reach 22,709 from 14,434.
The influx in listings is normal for a spring market, but won’t take much, if any, of the heat off the market, said Dayle Carmody, a realtor in the region.
“What we’re going to see now with another lockdown … is the market get even crazier again,” she said.
She believes the frenzy is being fuelled by consumer confidence and a mindset shift that happens as people realized their early assumptions about COVID causing the market to crash are unlikely to come to fruition.
As they realize the market is heated, she’s seeing people struggle to snag a home and even, reassess their buying goals.
“It just pushes people back into the condo market and they move back down the affordability scale, because if they were hoping to get into a townhouse or semi, now they can’t afford it,” Carmody said.
GTA condos saw the smallest growth in prices, according to TRREB. The average condo price climbed by 2.6 per cent to $676,052.
The most dramatic price increases were seen in detached housing, where the average price was up by 26.6 per cent to hit $1,402,849.The average semi-detached home sold for $1,045,519, a 17.5 per cent hike, while townhouses spiked by 20.7 per cent at $870,553.
With files from Tara Deschamps, The Canadian Press