For the previous month of July, there has been an impressive recovery of home sales as records set an all-new high. It seems like this remarkable upward trend is not going to end soon as transactions and average selling price for all major home types continue to increase for the month of August. Low-rise homes such as detached, semi-detached and townhouses have seen the most increase in sales growth. While condominium apartment sales also increased annually but not as much.
According to Toronto Regional Real Estate Board (TRREB) president Lisa Patel, “Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs.
Also, more people had decided to spend their summer vacation in house hunting instead of going to vacation. It was a good recovery from the halted real estate activities in the spring when the pandemic was at its peak.
Additionally, there’s an increase in the number of buyers showing interest in bigger space and the suburbs amidst the quarantine. This might explain why sales in high-rise homes such as condo apartments in the city centre increased but in a lesser degree. Adding to that, there are more new listings for condos compared to actual sales.
Let us take a look now at the numbers presented by TRREB in their latest August 2020 statistical update for GTA.
Source: TRREB September 29, 2020
Year-over-year Total Residential Transactions
August 2019 - 7,682
August 2020 – 10,775
Sales for all major home types are up by 40.3% compared to last year. Additionally, August 2020 sales show improvement over July 2020.
July 2020 – 9,363
August 2020- 10,344
There is an increase of 10.5% in sales compared the previous month.
The number of home sales in August increased by a high record of 40.3% on a year-over-year basis, and a noteworthy improvement also of 10.5% increase from last month.
The average selling price of homes continues to rise steadily.
August 2019 - $ 792,134
August 2020 – $ 951,404
There is a 20.1% increase in selling price compared to last year.
The same pattern can be observed as we compare the average selling price for the previous month
July 2020 – $ 958,713
August 2020 – $ 983,932
There is an increase of 2.6% in selling price compared the previous month.
Total New Listings added to the Market
August 2019 – 11,789
August 2020 – 18,491
The number of new listings jumped to 56.8% increase in a year-over-year basis.
The August 2020 % Sales-to-New Listings Ratio of 58% decreased by 7% compared to 65% of August last year.
Given this consistent upward trend for the past few months, it seems like Toronto housing market will continue its gradual recovery for the next few months.
For the month of August, there has been a total of 2,268 sales for condo apartments. This is an increase of 10.9% from last year. As mentioned earlier, this increase is much lesser compared to pre-pandemic numbers and key factors might be the growth in condo listings as well as the preference of buyers shifting from high-rise to low-rise homes. The average selling price is currently at $629,643 which is 9.5% higher from the previous year.
From August 1 to 31, there were 1,875 transactions for townhouses, an increase of 45.8% from same month of last year. The average sold price is currently at $742,517, an annual change of 16.1% and an increase of 9% quarterly.
To sum up, Toronto real estate market proves to be resilient as it continues its gradual recovery from the pandemic interval. There has been a noticeable change of buyers’ interest from city centre homes to the suburbs and low-rise homes. Because of that, the market is tight in low-rise home types leading to increase of average selling price. On the other hand, plenty of new condo apartment listings still makes condos a very affordable option for most people. As the economy and immigration starts to return to normal, we can expect more activities in the market for the coming months.
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