Pent-up demand from COVID-19 has helped Toronto’s resale home market roar back to life this summer.
The Toronto Region Real Estate Board (TRREB) reported a 16.9% year over year average price growth and a 29.5% increase in sales in July.
The number of new listings also rose 24.7% annually, but it wasn’t enough for the growth in sales, making for a tighter market this year than last. Active listings also shrank 16.3% compared to July 2019.
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Home prices climbed to a record high in Toronto last month, and the local real estate board suggested there's no end in sight with plenty of buyers hunting for a home.
The average selling price for all homes sold in the Greater Toronto Area climbed 11.9% year-over-year in June to $930,869, according to data released by the Toronto Regional Real Estate Board (TRREB). That exceeds the previous high of $920,791 that was logged in April 2017 amid bubble fears that were running rampant at the time and which prompted intervention by Ontario's then-Liberal government.
Toronto-area home sales saw another month of decreases as sales fell to 53.7% compared to May 2019. However, home prices have remained strong as area prices saw an increase of 3% year-over-year in May. “With home sales and new listings continuing to trend in unison in May, market conditions remained balanced. This balance was evidenced by year-over-year average price growth slightly above the Bank of Canada’s long-term target for inflation,” said Jason Mercer, TRREB’s Chief Market Analyst.
Home sales in the Greater Toronto Area plunged 67% in April as COVID-19 pandemic freezes the real estate market. "Past recessions and recoveries do not necessarily provide the best guide as to how the housing market will recover from the impact of the COVID-19 pandemic," TREB chief executive John DiMichele said in a statement.
While home prices stayed steady at $820,363 compared to April 2019 on a seasonally adjusted basis, TREB said April home prices in the GTA fell 11.8% from March 2020.
Housing market inside scoop
Home sales across the Greater Toronto Area rose 12.3% compared to March of last year as 8,012 properties traded hands. The average selling price of a home also climbed 14.5% from a year ago, to $902,680.
Greater Toronto Area saw 7,256 residential sales in February 2020, a 45.6% increase compared to last February. TRREB has forecasted a strong year for sales growth and is calling for 97,000 sales in 2020 according to their published Market Year in Review and Outlook Report. Home prices also saw an increase in February 2020 to an average property price of $910,290.