In the world of Toronto real estate, the drastic precautionary measures taken in response to COVID-19 effectively froze the market for ten weeks. Then, as June progressed, an unanticipated thaw occurred, bringing a flurry of bully offers and bidding wars for downtown freehold housing in all price points that is duplicating the momentum we experienced during early Spring (read: February and the beginning of March).
In fact, despite the sweaty, humid weather, it doesn’t feel like a traditional Summer in Toronto Real Estate; the dynamics of demand and intensity of competition has realtors operating in a state of suspended disbelief! Usually, this kind of frenetic energy is reserved for the months of March and April, once again proving that this has not been a typical June!
Our summers in Canada are always relatively short, but with the momentum of a Spring market playing into the cusp of July, the season of Summer may be fleeting for those who are committed to buying or selling real estate. Yes, the opportunity to sail on a lake, bike on a trail, or sink into the stillness of the setting sun may be considered secondary by those actively in pursuit of their real estate objectives, but don’t lose sight that we have just ten more weeks of Summer bliss! So, let’s take advantage, Toronto! Whether it’s improving your golf score, sourcing culinary inspiration at a farmer’s market, or dining al fresco on your favourite patio, keep it physically distanced, stay safe, and soak up Summer!
Here’s the Toronto Real Estate Board’s analysis for June 2020, with graphics courtesy of Market Watch:
TORONTO, ONTARIO, July 7, 2020 – Toronto Regional Real Estate Board President Lisa Patel announced that Greater Toronto Area REALTORS® reported 8,701 sales through TRREB’s MLS® System in June 2020. This result represented a very substantial increase over the May 2020 sales result, both on an actual (+89 per cent) and seasonally adjusted basis (+84 per cent), and was only down by 1.4 per cent compared to June 2019.
Year-over-year growth in sales was reported in some areas and market segments. Especially notable were the detached and townhouse market segments in the GTA regions surrounding the City of Toronto.
New listings were up slightly on a year-over-year basis by 2.1 per cent. However, active listings on TRREB’s MLS® System at the end of June 2020 were down by 28.8 per cent compared to June 2019. Growth in new listings will need to outstrip growth in sales for a number of months before active listings approach last year’s levels.
The MLS® Home Price Index Composite Benchmark was up by 8.2 per cent year-over-year in June. The average selling price for all home types combined was $930,869 – up by 11.9 per cent compared to June 2019. The actual and seasonally-adjusted average selling price was also up substantially compared to May 2020, by 7.8 per cent and 9.8 per cent respectively.
Average and benchmark selling prices were up year-over-year for all major home types. The strongest average annual rates of price growth were experienced in the detached and semi-detached market segments in the City of Toronto at 14.3 per cent and 22 per cent respectively. This, coupled with the fact that average selling price growth outstripped growth in the MLS® HPI benchmarks, points to a resurgence in the higher-end market segments.
If you’d like to see more in depth figures – by housing type and/or geographical area – here’s the complete set of June 2020 TREB Stats.
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