June 2020 Market Review
June 2020 Review
As the economy slowly started to re-open in June following the lag of COVID-19, we began to see this positively impact the real estate market as a whole. While the year-over-year comparison of June 2019 to June 2020 shows a slight decrease of 1.4 per cent for total residential transactions reported by the Toronto Regional Real Estate Board (TRREB), the seasonally adjusted stats paint a much different picture. Comparing June 2020 to May 2020, we saw an impressive climb of 83.8 per cent in the number of sales reported, with 6,518 sales reported in June compared to only 3,546 in May. The amount of new listings in June was up 2.1 per cent compared to June 2019, with 16,153 new listings reported on TRREB’s MLS System.
Increasing Sale Prices
When comparing June 2020 to June 2019, the year-over-year average selling price for all home types combined increased by 11.9 per cent. The average sale price in June 2020 was $930,869 compared to $831,882 in June 2019. Comparing June 2020 to May 2020, the average selling price increased upwards by 9.8 percent. It is reassuring that the upward trends we saw in May have continued throughout June. With the strongest annual rate of price growth being in the semi-detached and detached housing markets in the City of Toronto, we are starting to see the beginning of the higher-end market reviving itself.
Is Now a Good Time to Act?
That statistics for June are encouraging and should provide both Buyers and Sellers with more confidence to re-enter the real estate market – should they have understandably shied away from it over the past few uncertain months. While we are still approaching this recovery stage with caution, if we do not experience any major hurdles, it is predicted that the strong market conditions discussed above should continue throughout the remainder of the year. Supporting these conditions is the assumption that the economy will continue to re-open, the labour market will keep improving and Buyers will still have access to historically low borrowing costs. It is important to note that there are some undetermined factors which could impact how strong the second half of 2020 is, such as whether or not we will see a dramatic increase in more COVID-19 cases or not. A spike in cases would rightly so cause the economy and therefore housing market to slow down once again. That being said, as always we will continue to closely monitor the real estate market and advise you of any notable decreases in new listings, sales, and average selling prices. If you are eager to take advantage of the continuously improving market conditions we are currently experiencing, let’s set up a time to connect and discuss how we can help you reach your real estate goals.
June 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – June 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – June 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – June 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – June 2020 – Illustration D