The Greater Toronto Area’s housing market appears to be immune to the economic impact of COVID-19. Sales volumes for the month of July hit an all-time high and housing prices continue to increase.
According to the data from the Toronto Regional Real Estate Board (TREBB) July was a record-breaking month with 11,081 homes sold which is a 29.5% increase in sales volume compared to July 2019 and average sale price is up 16.9%.
Sales activity was unexpectedly very strong for the first month of the summer. Normally, sales activity tends to die down during the summer months due to families being away on vacation. But this year was different due to the pent-up demand from the COVID-19 and the lull in April and May being satisfied in the summer as the economic recovery takes a firmer hold including Stage 3 re-opening.
The low-rise homes, particularly the detached homes outside the City of Toronto, lead the sales volume with 7504 homes sold in the 905 area code. Detached homes accounted for 43.7% of all sales with an average selling price increase of 16% compared to July 2019. However, the condo sales were also up on an annual basis including Toronto and average condo prices are up 8.8% compared to July 2019.
Due to COVID many home buyers and owners are realizing the importance of their home and we are starting to see moving into the suburbs and outside the GTA as homeowners are seeking greater comfort and to accommodate work-from-home spaces. Also, we are seeing record-low mortgage rates which un-doubtfully are encouraging first-time buyers to get into the market.
The shift to higher-priced homes pushed the average selling price by 16.9% higher to a new record high of $943,710.
We are definitely seeing pent up demand in the market and many starter homes are selling in bidding wars and over asking price. Although no one can predict the future the data indicates that the housing market is bouncing back much quicker than expected.
If you have any real estate questions or are thinking of making a move reach out.
