Since May, there has been a gradual recovery in the Toronto housing market. July however, sets a new record high as more homes are being sold and new listings are being added to the market in a fast rate. In fact, the July 2020 home sales is the highest level in history and the new listings also hit the highest record for the month of July according to CREA.
This is surely a big difference from the low sales and listings from three months ago. Competition between buyers is also getting tight as new listings to the market cannot keep up with the fast home sales. It seems like many homebuyers spent the second month of the summer to look for new homes, especially now that Toronto is slowly easing restrictions as the city enters Stage 3 of reopening.
Let us take a look now at the numbers presented by TRREB in their latest July 2020 statistical update for GTA.
Source: TRREB August 6, 2020
Residential Statistics
Year-over-year Total Residential Transactions
July 2019 - 8,555
July 2020 – 11,081
There is an outstanding increase of 29.5% in sales compared to last year. Additionally, there is a big improvement in July 2020 sales result over June 2020.
June 2020 – 6,526
July 2020- 9,754
There is an increase of 49.5% in sales compared the previous month.
The number of home sales in July increased by a high record of 29.5% on a year-over-year basis, and a noteworthy improvement also of 49.5% increase from last month.
The average selling price of homes continues to rise steadily.
July 2019 - $ 806,971
July 2020 – $ 943,710
There is a 16.9% increase in selling price compared to last year.
The same increasing pattern can also be observed as we compare the average selling price in the previous month
June 2020 – $ 908,596
July 2020 – $ 958,713
There is an increase of 5.5% in selling price compared the previous month.
Total New Listings added to the Market
July 2019 – 14,403
July 2020 – 17,956
The number of new listings leaped to 24.7% increase in a year-over-year basis.
The July 2020 % Sales-to-New Listings Ratio of 62% increased by 3% compared to 59% of July last year.
The consistent increase of numbers up to July hints that the real estate market will continue to have bigger improvements for the next few months.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q2/19 – 7,024
Q2/20- 3,459
There is a significant decrease of -50.8% in condo sales compared the previous year.
Despite that, the average selling price for condos is still growing steadily
Q2/19 - $ 589,622
Q2/20- $ 619,707
There is an increase of 5.1% compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
Q2/19 – 11,114
Q2/20- 8,717
There is a decrease of -21.6% compared the previous year.
It is important to take note that these condo sales numbers are within the 3 worst months of coronavirus when many potential buyers have limited movements due to the health risk brought by COVID-19.
With the overall housing market trending toward recovery in June, condo apartment sales will likely improve in the third quarter.
– Michael Collins, TREB President
Townhouse Sales
From July 18 to August 15, there are a total of 687 sales in townhouses, up by 42% compared to last year. There is also a recorded 735 new listings, an increase of 83% from last year. As of August 2020, 1 Bedroom townhouse is at $649,000 average selling price. This is a 13% increase compared to $536,000 three months ago.
July numbers show that Toronto has a strong real estate market. A span of 3 months made a huge difference in home sales and new listings as more and more buyers are now actively buying homes after some downtime. It seems like the market crash is over, and we can expect that Toronto housing market will continue to move forward.
If you have any question about Toronto housing market or need help buying your new home, contact me at 647-834-9928 or send an email to [email protected]