With more people staying close to home this summer, the real estate market has continued its torrid price growth setting a new record for the month of July.
The Toronto Regional Real Estate Board is reporting 11,081 sales in July 2020, which is a 29.5 per cent increase over July 2019 and a new record. Sales are also up 49.5 per cent over June 2020.
“Sales activity was extremely strong for the first full month of summer,” said TRREB president Lisa Patel. “Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with pent-up demand from the COVID-19-related lull in April and May being satisfied in the summer, as economic recovery takes a firmer hold, including the Stage 3 re-opening. In addition, fewer people are travelling, which has likely translated into more transactions and listings.”
Prices were also up across the board in July with the overall average selling price increasing by 16.9 per cent year-over-year to $943,710. Prices also increased by 5.5 per cent compared to June 2020.
TRREB’s chief market analyst Jason Mercer suggested the price growth was due to limited supply creating increased competition for fewer homes. Although listings shot up by 24.7 per cent, it was still less than the number of sales.
“Competition between buyers continued to increase in many segments of the GTA ownership housing market in July, which fuelled a further acceleration in year-over-year price growth in July compared to June,” he explained. “On top of this, we also experienced stronger sales growth in the more-expensive detached market segment.”
Real estate is surging outside the city as well as both cottage country and rural markets are red hot and experiencing rapid price growth due to renewed interest and short supply.
Price growth was strongest for low-rise home types, notably within Toronto, although year-over-year price growth remained strong for the condo market as well.
The average sale price in the city of Toronto is $1,017,320 up from $840,360 a year ago.