The frenzied pace of home buying Toronto experienced in 2020 has waned but prices continue to increase.

As anyone searching for a home knows, it is difficult to find a decent home under $1 million unless you want to live in a shack or run-down bungalow.

And it is not just in Toronto. Across Canada, home sales dipped -0.5 per cent from July and -14 percent compared to 2020's scorching summer market but it's still the second-best August in history for real estate transactions, according to a new report from Zoocasa.

"Canadian housing markets appear to be stabilizing somewhere in between pre- and peak-pandemic levels – which is to say, still extremely unbalanced," said Canadian Real Estate Association senior economist Shaun Cathcart.

Across the GTA benchmark home prices are up 17.3 per cent year over year to $1,059,300, the report states. The main factor behind the price increase is a lack of homes on the market.

"Greater Toronto buyers continued to be challenged by a steep shortage of supply," the report states.

The number of new listings plunged by -42.6 per cent in August, with 12,255 homes brought to market. Zoocasa suggests that has contributed to a -2.7 per cent decline in sales from July and a -20.2 pent cent drop from 2020, as 8,579 homes traded hands.

If you are thinking of waiting it out for prices to drop, the Canadian Real Estate Association believes home prices will continue to rise.

And although politicians have made bold promises in the federal election, there doesn't seem to be an immediate solution.

"The numbers for August provided more evidence of what many of us already knew or suspected to be the case –this housing crisis will not go away on its own," said Cliff Stevenson, chair of the Canadian Real Estate Association.

"As such, it's encouraging to see all of the major parties looking at longer-term solutions to an issue that’s been around for a while. It also highlights how there are no quick fixes here, so this market will remain challenging for those who choose or have to engage in it."

As the vaccination rate increases, economies open, and immigration picks back up home prices are expected to continue to rise. The Canadian Real Estate Association is predicting 2021 will set an all-time record for sales with 656,300 transactions by years' end, marking an 18.8 per cent increase from 2020.

In comparison, 2022 sales will trend lower, mainly due to record-low inventory. The Canadian Real Estate Association predicts 577,000 transactions, at an average price of $718,000, an increase of 5.6 per cent from 2021.