September 4, 2020 | Buying
As our economy begins the long road of ‘bounce-back’ following Toronto’s lock-down in mid-April, The Toronto Regional Real Estate Board has seen record-breaking numbers over 2020’s summer months following the outbreak of this global pandemic. These numbers are proving to Toronto residents the strength and resilience of our Real Estate Market.
TREB reported 10,775 residential sales through the MLS system in August 2020 which displayed an increase of 40.3 per cent compared to the numbers we saw in August 2019. Sales were also up on a year-over-year basis- predominantly driven by the detached, semi-detached and townhouse market segments. Condominium sales were also up on an annual basis but the numbers weren’t as influential as the low-rise market segments.
Predominant influencers of the increased demand for homeownership have been GDP growth and job creation as well as the continuation of very low borrowing costs. As the majority of residents in Toronto have chosen to forego travel due to COVID-19 and stay home, this has influenced a higher level of activity in the housing market compared to our nearly motionless spring market.
Furthermore, both the number of active sales and the number of new listings reported by TREB at the end of August 2020 were up on a year-over-year basis. While all home types displayed a strong number of new listings, growth in new condominium listings far superseded the growth seen in other housing market segments.
Generally speaking, Toronto’s real estate market conditions remained tight within the GTA. Low inventory mixed with a large number of active Buyers increased the level of competition which has led to the vigorous annual rates of price growth within our city- especially within the detached, semi-detached and townhome market segments. Condominium market conditions were much more balanced comparatively which was mirrored in the slower pace of price growth.
The MLS Home Price Index Composite Benchmark rose by 11.1 per cent in August 2020 compared to August 2019. The overall average sale price increased by 20.1 per cent over the same period to $951,404. Annual detached and semi-detached sales growth was more powerful in the relatively more-expensive City of Toronto compared to the surrounding GTA regions, which clarifies why growth in the overall average sale prices outperformed the growth in 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.