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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!
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Monthly Market Updates

Toronto Real Estate Market Report – May 2020

May traditionally marks the busiest month for real estate in Toronto… this year – not so much. Self-isolation,  social distancing, and the overall uncertainty of the future reduced much of the activity we typically see in May. However, activity did start to pick up towards the end of the month!

April marked the first month of full lockdown, and really set the benchmark for comparison purposes. It’s important to distinguish market activity with pre and post COVID-19 numbers to get an accurate pulse of where the market is heading.

In May – sales, listings, active listings and prices posted much higher numbers than in April. Sales and new listings doubled (over 50%), month over month, and the average price increased to $863,000 (an increase of more than 5%). Speaking from my own experience, I also witnessed a huge uptick in emails, calls and showings on my listings. 

Because context is important, now more than ever, it has to be said that May typically records the highest numbers of the year… but not so in 2020. 

On a year-over-year (YOY) basis: sales were down by over 75% and new listings by 54%. We also saw a 68% increase in days properties sat on the market – a clear indication of a much cooler May. Prices did see a small gain of nearly 3% compared to May 2019, but still much less than the double-digit appreciation we saw in Q1 (January, February and March) of this year!

Detatched Houses

  • 432 sales took place during the month of May
  • 119 more homes than the previous month (38% increase in sales)
  • 748 fewer homes than the previous year (63% decline in sales)

  • The average price of a detached home was $1,422,273
  • Up $172,543 compared to the previous month (13% increase in price)
  • Up $37,280 compared to the previous year (2.7% increase in price)

Semi Detached Houses

  • 164 sales took place during the month of May
  • 38 more homes than the previous month (30% increase in sales)
  • 244 fewer homes than the previous year (59% decline in sales)

  • The average price of a Semi-Detached home was $1,143,322
  • Up $46,000 compared to the previous month (4% increase in price)
  • Up $92,790 compared to the previous year (8% increase)

Town Houses

  • 164 sales took place during the month of May
  • 56 more homes than the previous month (51% increase in sales)
  • 202 fewer homes than the previous year (55% decline in sales)

  • The average price of a Town House was $794,626
  • Up $9,727 compared to the previous month (1% increase in price)
  • Down $1,463 compared to the previous year (0.18% decrease in price)

Condos

  • 727 sales took place during the month of May
  • 245 more sales than the previous month (50% increase in sales)
  • 1,102 fewer condos than the previous year (58% decline in sales)

  • The average price of a Condo was $674,028
  • Up $61,728 compared to the previous month (10% increase in price)
  • Up $31,137 compared to the previous year (4% increase in price)

TRENDS TO WATCH

  1. In April, the Government put a ban on short-term rental services (think AirBnB). As a result, we saw a lot more rental units come to market in the condo sector.  With an oversupply of available units, we saw rent prices come down significantly. The government has lifted its short-term restriction, so we’ll see the impact this may have on the supply of condo rentals.
  2. Canada Mortgage and Housing Corporation (CMHC) is in the process of announcing stricter lending criteria for anyone purchasing with less than 20% down. This could create a mini push for buyers into the market before the new rules take effect.
  3. Bidding wars are back. I’ve seen several houses sell way over asking (and market value) in the last few weeks. Much of this can probably be attributed to the pent up demand from months prior – curious to see if this continues into the traditionally quieter summer months!