October 6, 2020 | Buying
The Toronto Real Estate Board reported 11,083 sales in September 2020- a record-breaking number of sales for the month of September. This result was up by 42.3 per cent compared to September 2019. The third quarter of 2020 broke new records within the Toronto Real Estate Market, sales through the first nine months of 2020 increased by roughly one per cent compared to the same period in 2019.
The record-level sales in September were heavily influenced by improving economic conditions and the extremely low borrowing costs. Continual adjustment for the substantial amount of pent-up demand as a result of the spring downturn has supported these numbers as well. Further enhancements in Toronto’s economy, including job growth, would support strong home sales moving forward. Nevertheless, it will be crucial to monitor the trajectory of COVID-19 cases, the related government policy response, and the influence on jobs and consumer confidence.
Sales growth in September year-over-year continues to be driven by low-rise market segments including semi-detached and detached houses and townhomes. Annual growth rates continued to increase for sales reported in the GTA regions surrounding the City of Toronto.
The September 2020 MLS Home Price Index Composite Benchmark was up by 11.6 per cent year-over-year. The average sale price for all home types combined in September 2020 was $960,722 – up by 14 per cent compared to last year. Condominium apartment segments offer plentiful amounts of supply which resulted in a comparatively slower pace of price growth- supply & demand.
Market conditions in September 2020 tightened relative to last year, with the number of sales increasing at a faster pace than new listings. Buyer competition is more prevalent as the number of new listings remains low compared to the number of Buyers intending to purchase. Double-digit year-over-year price growth was commonplace throughout Toronto in September, resulting in record-breaking numbers overall.
There is no doubt that transacting in Real Estate at this time has proven to be more difficult, however, not nearly impossible. We have had the pleasure of servicing a number of our clients during this pandemic resulting in successful and most of all SAFE transactions throughout. Very serious precautions are in place and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage within the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.