August 7, 2020 | Buying
July 2020 certainly bounced back economically within Toronto’s Real Estate Market. The Toronto Real Estate Board reported 11,081 sales through TRREB’s MLS System in July 2020. This figure set a new record for the month of July and displayed a 29.5 per cent increase over July 2019. On a preliminary seasonally adjusted basis, sales increased by 49.5 per cent compared to June 2020.
Sales growth was primarily driven year-over-year by low-rise home types, however, condominium apartment sales were also up on an annual basis. Total new listings also increased substantially year-over-year by 24.7 per cent. The Toronto Real Estate Market felt tighter market conditions this July compared to the conditions in July 2019. Although this annual growth rate was less than that of sales, active listings at the end of July were down by 16.3 per cent.
For the first full month of summer sales activity was extremely strong. Typically, we would see sales dip in July compared to June as the majority of households take a vacation as children are out of school. Due to the impact of COVID-19 weakening April and May’s usual spring market conditions, things have definitely bounced back this summer making up for the delay. As economic recovery takes a firmer hold on our city, including the Stage 3 re-opening, fewer people are travelling this summer due to restrictions and limitations and have likely translated into more transactions and listings.
Compared to July 2019, the July 2020 MLS Home Price Index Composite Benchmark was up by 10 per cent. The overall average sale price was up by 16.9 per cent year-over-year to $943,710. Considering the preliminary seasonal adjustment, the average selling price was up by 5.5 per cent compared to last month’s June numbers.
Low-rise home types in Toronto proved the strongest market segment in price growth, despite more balanced market conditions in the condominium apartment segment, price growth compared to that of July 2019 remained in the high single digits.
Overall, competition between buyers has continued to increase in Toronto’s housing market in July, which contributed to further acceleration in year-over-year price growth in July compared to last month’s June numbers. In addition to this, we also experienced stronger sales growth in the luxury detached market segments, which provides further clarification as to why annual growth in the overall average selling price was greater than growth for the MLS HPI Composite benchmark.
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.