The real estate market started this year on a strong note with January experiencing a robust market as activity continued to soar.
In January 2021, the residential mortgage registration volume, across all property types, was 43,442 – a 6.86% year-over-year increase from January 2020.
The volume, reported in January 2021, was also higher than the total registration volume recorded in the past three years; trailing closely behind the previous high of 43,500 recorded in 2017.
Total registration volume wasn’t the only increase we saw. The total dollar amount of residential mortgages in January 2021 ($23.9 billion) surpassed last year’s record ($18.9 billion). Not just that, the total dollar amount of residential mortgages was the highest it has been in the past seven years of data.
Some other key observations for the month of January include:
I. Only some lender categories experienced positive year-over-year growth in mortgage registrations. Trust Companies and the Big 6 Banks had the highest percentages by lender category which were 20.8% and 13.8% respectively. Individual lenders and credit unions experienced a decline of -22.4% and -18.6% respectively.
II. The residential sales registration volume in January 2021 was 22,143 which outperformed the sales registration volume in January 2020 by 23.17%.
III. Most municipalities with the top 10 highest registration volumes experienced a year-over-year increase from last year. Ottawa and Vaughan documented the strongest year-over-year performance with 16.5% and 14.6% respectively. Windsor and Toronto fell short with decreases in year-over-year performance of -5.4% and -4.9% respectively.
IV. All property types experienced increases in year-over-year performance for mortgage registrations; with the ‘Condo’ property type experiencing the biggest increase.
These observations show that while the global pandemic left us shaken, Canada’s real estate market recovered quickly and is now stronger than ever.
Despite continued uncertainty, January 2021 brought high volumes and dollar amounts in mortgage registrations and sales transactions, outperforming previous records. In fact, the sales registrations among first-time home buyers were the highest since 2017. Sales registrations among non-first-time home buyers trailed closely behind the current high recorded in 2017.
With restrictions slowly easing, continued low interest rates, and the desire for spacious properties, real estate activity in Ontario remains high.
To learn more, access the full Teranet Market Insights Report for free. Download it here: Teranet Monthly Market Insight Report February 2021
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