RECORD SETTING JULY
The Toronto Regional Real Estate Board (TRREB) has released the sales figures for July and a new monthly sales record has been set with 11,081 transactions reported on the MLS. This represents a 29.5% increase over July 2019 and a 27.4% increase from June. Historically, we would experience a dip in the summer months however with COVID-19 impacting vacation plans, we are seeing our spring market activity happening during the summer months.
Annual sales growth was fuelled in large part by the low-rise housing segments. Detached home sales were up 43.7% year-over-year, followed by townhomes at +31.3%, and semi-detached at +25.4%. Worth noting was the jump in low-rise home sales in the suburbs with detached home sales in the 905 showing an annual increase of 48.3%, outpacing sales of detached homes in the City of Toronto by more than 4 to 1 (4,531 compared to 1,102) as buyers seek sanctuary outside the city and working from home becomes more normalized.
Condo sales for the region were also up, albeit a more modest 6.7% with buyers looking for lower density options and easier access to outdoor space. That said, it should also be noted that due to COVID-19, showings are more challenging in high-rise communities than in ground level housing and many amenity spaces remain closed.
Despite the economic uncertainty, housing prices across the GTA continue to hold. At $943,710, the average sales price was up 16.9% from the same period last year. The MLS Home Price Index (HPI) Composite Benchmark which is a more accurate indicator of inflation in the market was up 10% year-over-year. With average price growth exceeding the HPI composite benchmarks, it further illustrates how we are seeing a resurgence in the market for more expensive single detached housing.
Looking at pricing by category, average prices were up across the board. Semi-detached ($915,451) showed the biggest gains at 16.1%, followed by detached ($1,154,356) at 16% and townhomes ($733,775) at 11.1%. Condos ($635,778) were up 8.8% year-over-year. Average prices for singles and semis in the 416 were up 25.5% and 20% respectively.
With the high volume of housing sales, new listings and active listings are not keeping pace. While new listings were up 24.7% year-over-year, active listings are down 16.3%. Housing inventory is now sitting at just 1.4 months, creating very strong seller’s market conditions as competition amongst buyers continues to grow.
As we enter Phase 3 of the re-opening and the economic recovery continues to take hold, for all the latest information in this rapidly accelerating real estate market reach out to The Mahoney Real Estate Group today!
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