As we move through the first weeks of Autumn, it's clear that the COVID-19 pandemic has shifted the Toronto real estate market into something less predictable and governed by a whole new set of trends and dynamics. Realtors are tasked with being extra diligent to interpret exactly what is occurring in all market segments in the city.
Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn. The majority of growth occurred in the freehold market segment, while the relatively better-supplied condominium apartment segment experienced a comparatively slower pace of price growth.
Autumn is upon us! Here's the Toronto Real Estate Board's analysis for September 2020, with graphics courtesy of Market Watch:
TORONTO, ONTARIO, October 6, 2020 – Toronto Regional Real Estate Board President Lisa Patel announced that sales reported through TRREB’s MLS® System by Greater Toronto Area REALTORS® amounted to 11,083 –a new record for the month of September. This result was up by 42.3 per cent compared to September 2019.
Following a record third quarter, sales through the first nine months of 2020 were up by approximately one per cent compared to the same period in 2019
“Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence,” said Ms. Patel.
Year-over-year sales growth in September continued to be driven by ground-oriented market segments, including detached and semi-detached houses and townhouses. Annual growth rates were also higher for sales reported in the GTA regions surrounding the City of Toronto.
The September 2020 MLS® Home Price Index Composite Benchmark was up by 11.6 per cent year-over-year. The average selling price for all home types combined in September was $960,772 –up by 14 per cent year-over-year.Price growth was driven by the low-rise market segments. The relatively better-supplied condominium apartment segment experienced a comparatively slower pace of price growth.
“On a GTA-wide basis, market conditions tightened in September relative to last year, with sales increasing at a faster pace than new listings. With competition between buyers increasing noticeably, double-digit year-over-year price growth was commonplace throughout the region in September, resulting in the overall average selling price reaching a new record,” said Jason Mercer, TRREB’s Chief Market Analyst.
“The housing market recovery experienced throughout the summer benefitted the broader economy as well. Home sales reported through TRREB’s MLS® System result in billions of dollars in spin-off expenditures, support for tens of thousands of jobs, and billions of dollars in taxes paid to all levels of government. The demand for housing and the related economic impacts will continue in the post-COVID period as population growth resumes. Policymakers will need to continue their efforts to bring more housing supply on line to meet this longer-term demand,” said TRREB CEO John DiMichele.
Love a good infographic as much as we do? Here's one from our broker - Bosley Real Estate Ltd., Brokerage - based on the September 2020 TRREB stats for the City Of Toronto!
If you'd like to see more in-depth figures - by housing type and/or geographical area - here's the complete set of September 2020 TRREB Stats.
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& The Innovative Urbaneer Team
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