October 2020 Market Review
October 2020 Review
The sales momentum experienced in the last few months continued into the month of October. For the fourth month in a row, the sales in 2020 were higher than 2019: October 2020 sales were 25.1% higher than October 2019.
It is also important to note that consumer confidence is continuing to be restored and more properties are coming to the market; thus, offering more product choice to the buyers. In October 2020, the new listings were 36.4% higher than that reported for October 2019. The total number of houses for sale was also higher by 12.6% in October 2020 vs October 2019.
Increasing Sale Prices
The average sale price for all home types for the month of October 2020 was also higher by 13.7% when compared to October 2019. When looking at the average price by home type, the detached houses showed the highest increase at 14.8% with the condo apartment being the lowest at 0.7%.
What trends are we seeing?
Although the growth of total number of properties for sale was welcoming news to buyers, the demand especially in detached houses was greater than the supply; thus, continuing to create a competitive environment for this category. This is particularly true for the main stream price range category. On the reverse side of the coin, the condominium market is saturated with inventory and thus an ideal time for anyone wanting to purchase a condo either to live in or as an investment.
What lies ahead for the rest of 2020?
The forecast for the balance of 2020 is that the sales patterns experienced in the last several months will continue to the end of the year. Factors contributing to this include: the pent-up demand that resulted from the Spring shutdown, the low interest rates and the economic recovery starting to happen in some sectors of the economy.
Footnote: Source of statistical data is from the October 2020 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.
October 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – September 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – October 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – October 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – October 2020 – Illustration D