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Monthly Market Updates

Toronto Real Estate Market Report – October 2020

As we enter the third quarter of pandemic activity in the city, one thing is becoming abundantly clear – houses are in high demand… and condos, not so much!

The average price in the city hit a new all-time high of $968,318 – largely thanks to the surge of prices in both the detached and semi-detached house markets. Condos continued to trend down in price with an average price of $668,161 nearly unchanged from last year’s monthly average.  

As rent prices continue to decline for condos (down 15 – 20%), and supply continues to increase, buyers have ample options to choose from. With the holidays around the corner, we’ve advised many clients to hold off on plans to sell (if possible), and revisit listing in the second quarter of 2021.

Three Trends to Watch

  1. a second lockdown may be looming in the city, and with it could come a further hit to consumer confidence. Could this impact all housing styles?
  2. with rent continuing to decline, will condo prices continue to soften?
  3. What impact, if any, will this have on the pre-construction market?

DETACHED HOUSES

1,228 sales took place
67 more homes than the previous month (5.77% increase in sales)
194 more homes than the last year (18.76% increase in sales)
The average price of a detached home was $1,470,857
A decrease of $16,265 compared to the previous month (1.09% decrease in price)
An increase of $147,842 compared to last year (11.17% increase in price)

SEMI-DETACHED HOUSES

416 sales took place
5 fewer homes than the previous month (1.19% decrease in sales)
94 more than the last year (29.19% increase in sales)
The average price was $1,154,087
An increase of $8,528 compared to the previous month (.74% increase in price)
An increase of $54,285 compared to last year (4.94% increase in price)

TOWNHOUSES

409 sales took place
7 more homes than the previous month (1.74% increase in sales)
69 more homes than the previous year (20.29% increase in sales)
The average price was $828,090
A decrease of $39,915 compared to the previous month (4.60% decrease in price)
An increase of $32,975 compared to the previous year (4.15% increase in price)

CONDOS

1,438 sales took place
111 fewer condos than the previous month (7.17% decrease in sales)
137 fewer condos than the previous year (8.7% decrease in sales)
The average price was $668,161
A decrease of $18,030 compared to the previous month (2.63% decrease in price)
A decrease of $5,530 compared to the previous year (.83% decrease in price)

 

Categories
Monthly Market Updates

Toronto Real Estate Market Report – July 2020

So much for a Summer slowdown!

Sales in the city were red hot in July – with a record-setting 11,000 + sales recorded for the month. We haven’t seen that much activity since April 2017. The average price of real estate in the city followed a similar trend hitting a new high (second month in a row) of $943,000. This represents an increase of nearly 17% compared to the same time last year… in a pandemic (crazy, I know).

You can thank the detached housing market for the increase in prices and sales – with a 2020 high of $1,540,000 up 1.3% from June and a whopping 25% from July 2019!

The price of semi-detached homes came down from last month’s high $1,287,000 to $1,181,000 – still up an impressive 20% from last year’s average of $981,000.

Condominium apartments had a lot more activity in July, with a 31% spike in activity than June. However, the increase in activity didn’t translate into much of a price jump, with average prices up only 1.5% compared to the previous month. Year over year, condos saw an 8.7%, which may sound good on its own – but was significantly less than the double-digit appreciation semis and detached houses recorded.

Demand for low rises (detached and semis) seems to be the trend during COVID. We suspect lower interest rates and backyards being the most significant driver to those looking to make a move.

DETACHED HOUSES

1,102 sales took place

208 more homes than the previous month (23% increase in sales)

236 more homes than the last year (27% increase in sales)

The average price of a detached home was $1,541,000

An increase of $17,000 compared to the previous month (1% increase in price)

An increase of $314,000 compared to last year (25% increase in price)

SEMI-DETACHED HOUSES

372 sales took place

109 more homes than the previous month (44% increase in sales)

96 more than the last year (34% increase in sales)

The average price was $1,181,000

A decrease of $106,000 compared to the previous month (8% decrease in price)

An increase of $199,000 compared to last year (20% increase in price)

TOWNHOUSES

393 sales took place

29 more homes than the previous month (8% increase in sales)

65 more homes than the previous year (20% increase in sales)

The average price was $852,000

A decrease of $3,000 compared to the previous month (.3% decrease in price)

An increase of $96,000 compared to the previous year (12% increase in price)

CONDOS

1,689 sales took place

402 more condos than the previous month (31% increase in sales)

72 more condos than the previous year (4% increase in sales)

The average price was $682,999

An increase of $10,500 compared to the previous month (1.6% increase in price)

An increase of $55,000 compared to the previous year (8.8% increase in price)

TRENDS TO WATCH

  1. July saw a lot more activity in the condo market, however, prices continued to hold near levels seen in late 2019/early 2020. If you’re a buyer, this is a great time to be looking at condos as competition is way down.

  2. With most universities and colleges offering online classes only, and out of country students not returning for the September semester, we’ll be watching the impact this has on the already hampered rental market. 

  3. Semis and detached continue to be the most desirable styles of housing in this post COVID world. We’re not seeing this change any time soon!
Categories
Covid-19 Monthly Market Updates

Toronto Real Estate Market Report – April 2020

April is a pivotal month for real estate in Toronto – it ushers in the start of the spring market and sets the tone for the months ahead. This year, April also represented the first full month of widespread lockdowns and closures throughout the city as a result of COVID-19. Property values, sales numbers, and market confidence were all impacted by these changes.

Many sellers elected to take their properties off the market and hold off on plans to sell. As a result, listings down by 57% compared to the month prior, and by 65% compared to April 2019. With fewer properties coming to the market, sales followed a similar trend, with only 2,975 taking place. This represented a stark contrast from the 14,000 that were sold during the same period of April 2019.

Prices and Sales Decline

All segments of the market saw steep drops in both the number of sales and their corresponding prices.

Detached Houses 

  • 313 sales took place during the month of April
  • 520 fewer homes than the previous month (62% decline in sales)
  • 669 fewer homes than the previous year (68% decline in sales)

  • The average price of a detached home was $1,249,730
  • Down $216,000 compared to the previous month (15% decline in price)
  • Down $106,000 compared to the previous year (8% decline in price)

Semi-Detached Houses 

  • 126 sales took place during the month of April
  • 103 fewer homes than the previous month (45% decline in sales)
  • 155 fewer homes than the previous year (55% decline in sales)

  • The average price of a Semi-Detached home was $1,096,437
  • Down $59,000 compared to the previous month (5% decline in price)
  • Up $44,000 compared to the previous year (4% increase)

Town Houses 

  • 108 sales took place during the month of April
  • 184 fewer homes than the previous month (63% decline in sales)
  • 236 fewer homes than the previous year (69% decline in sales)

  • The average price of a Town House was $784,899
  • Down $49,000 compared to the previous month (6% decline in price)
  • Up $27,000 compared to the previous year (4% increase in price)

Condominiums 

  • 482 sales took place during the month of April
  • 920 fewer condos than the previous month (65% decline in sales)
  • 1,126 fewer conds than the previous year (70% decline in sales)

  • The average price of a Condo was $612,300
  • Down $100,000 compared to the previous month (14% decline in price)
  • Down $24,000 compared to the previous year (4% decline in price)

There was a bit of good news when looking at prices in the Semi-Detached and Townhome markets – they both saw year over year price increases. However, condos and detached homes were hit the hardest in both numbers of sales and prices.

Three Trends To Watch

  1. The Ontario Government has temporarily banned short term rentals in the City. This directly impacts investors of AirBnB units and their ability to rent out condos.  It’s possible that this will bring more units back to the rental market, or even for sale!

    2. Could working from home be the new norm? If so, will commute times matter? The decision to live outside of the city may become an easier one to make. How will this impact demand in the City?

    3. In Toronto, our demand relies on population growth – and a lot of the growth comes from people migrating into the city. With travel restrictions and flight travel changing as we know it, this could have a significant impact on demand for future years ahead.