In August the Greater Toronto Area’s housing market remains strong.  In fact, we continue to see record results in the month of August.  Demand for housing continues to remain very strong and we are seeing many homes selling in bidding wars in the Greater Toronto Area primarily due to demand outpacing supply.
 
In August 2020 there were 10,775 sales which reflect a 40.3% increase in sales compared to August 2019.  These sales volumes were driven primarily by low rise homes: detached, semi-detached, and townhomes.  Condominiums were also up in sales volumes year-over-year but to a lesser degree. 
 

 
Increased confidence in the recovery of the economy due to COVID-19 combined with improved GDP and the continuation of low mortgage rates continues to support the strong housing market demand
 
Demand for real estate continues to outstrip supply for low rise housing and has resulted in the overall average selling price increase of 20.1%.  The average price of a home in the GTA is now $951,404.
 
Detached homes led 19% of the overall sales volumes, followed by Semi-detached homes 18%, townhomes where 16.1% and condominiums were 9.5% of overall sales volumes.
 
The projection is that the real estate market will continue strong for the balance of the year and that the slowdown in the condo market is only a short term cycle. 
 
Due to COVID-19, we are also seeing a decrease in demand for low rise housing in downtown urban to suburban and rural, cottage areas.  This may be due to the population realizing that COVID-19 has changed work arrangements permanently and that employers will most likely be receptive to more flexible work from home arrangements. It will be interesting to see if this trend continues once COVID-19 is behind us.