July 2020 Market Review
July 2020 Review
July 2020 has been an impressive, record breaking month within the Real Estate industry. When reviewing the number of sales reported on the Toronto Regional Real Estate Board (TRREB’s) MLS System, it’s evident that the market is swiftly recovering from the lag that was experienced in April and May of this year due to COVID-19. In July 2020, there were 11,081 sales reported on TRREB. This is a 29.5 per cent annual increase compared to July 2019, which sets a brand new record for amount of sales in the month of July. Comparing July 2020 to June 2020 we see an increase of sales up by 49.5 per cent. Historically, these upwards trends moving into the first official month of summer are not typical, as a lot of home buyers and sellers normally leave the country for vacation when their children are out of school. Given the travel restrictions and border controls put in place due to the ongoing pandemic, we are seeing more and more families embracing their ability to enter the market, especially now that we are in Stage 3 of the economy re-opening and recovering.
New listings reported on TRREB’s MLS System also climbed up significantly with a 24.6 per cent increase compared to July 2019. However, by the end of July 2020, active listings were down by 16.3 per cent. It is important to note that since the growth of new listings was less than the increase of sales, this is indicative of tightening market conditions. Competition between buyers spiked in July as homes were being sold faster than new listings were are added to the market.
Increasing Sale Prices
When comparing July 2020 to July 2019, the year-over-year average selling price for all home types combined increased by 16.9 per cent. The average sale price in July 2020 was $943,710 compared to $806,971 in July 2019. Comparing July 2020 to June 2020, the average selling price increased upwards by 5.5 per cent. The sale prices of low-rise homes in the City of Toronto had a notable contribution to this price growth. It’s also exciting to note that sellers in the higher-end detached market segment in the GTA enjoyed a strong sales growth, which helped to contribute to the growth of the overall average selling price.
Is Now a Good Time to Act?
We are encouraging both buyers and sellers whom have been considering entering the real estate market to do so sooner than later, to take advantage of the improving labour market and continued historically low mortgage rates. From a buyers perspective, with the upwards trend of sale prices continuing to increase month-over-month, consider entering the market sooner than later to ensure you are able to meet your real estate needs. From a sellers perspective, as discussed above, with the amount of sales out numbering the amount of new listings, this does put you in an advantageous position as competition between buyers will likely continue to increase. We recommend both buyers and sellers to capitalize on the improving market now, prior to any potential future slowing down of the housing market and economy as a result of a second wave of COVID-19. If you’re looking for more targeted information on when you personally should enter the market based on your specific product type and location, connect with us today to learn more.
July 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – July 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – July 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – July 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – July 2020 – Illustration D