Toronto’s real estate market is heating up, with July setting a new year-on-year sales record.
Figures released by the Toronto Regional Real Estate Board (TRREB) revealed that the Greater Toronto Area saw 11,081 sales in July 2020 – a 29.5% increase over the same period in 2019 and a new record for the month of July. Additionally, sales were up by 49.5% compared to June 2020 on a preliminary seasonally adjusted basis.
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The numbers also showed that total new listings were up on a year-on-year basis by 24.7% – but this annual growth rate was less than that of sales, which means market conditions tightened on average compared to July 2019. Additionally, active listings at the end of July were down by 16.3%.
“Sales activity was extremely strong for the first full month of summer,” said Lisa Patel, president of TRREB. “Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with pent-up demand from the COVID-19-related lull in April and May being satisfied in the summer, as economic recovery takes firmer hold, including the Stage 3 re-opening. In addition, fewer people are travelling, which has likely translated into more transactions and listings.”
According to TRREB, the overall average selling price was up by 16.9% year-over-year to $943,710. On a preliminary seasonally adjusted basis, the average selling price was up by 5.5% compared to June 2020. Price growth was strongest for low-rise home types, notably within the City of Toronto. Despite more balanced market conditions in the condominium apartment market segment, year-over-year price growth remained in the high single-digits.
“Competition between buyers continued to increase in many segments of the GTA ownership housing market in July, which fueled a further acceleration in year-over-year price growth in July compared to June,” Jason Mercer, chief market analyst at TRREB.