Toronto Regional Real Estate Board announced that the strong rebound in Greater Toronto Area (GTA) home sales continued with a record result for the month of August.
GTA REALTORS® reported 10,775 residential sales through TRREB’s MLS® System in August 2020 – up by 40.3 per cent compared to August 2019.
Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions.
It should be noted that the low-rise market segments, including detached and semi-detached houses and townhouses, were the drivers of sales growth. Condominium apartment sales were up on an annual basis for the second straight month but to a lesser degree.
Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs. In addition, fewer households have chosen to go on vacation as a result of COVID-19 and instead have remained in the GTA and been active in the housing market, satisfying pent-up demand from the spring.
Both the number of new listings entered into TRREB’s MLS® System during the month and the number of active listings at the end of the August 2020 were up on a year-over-year basis. While new listings were up strongly for all home types, growth in new condominium apartment listings far outstripped growth in the other market segments.
“Generally speaking, market conditions remained very tight in the GTA resale market in August. Competition between buyers was especially strong for low-rise home types, leading to robust annual rates of price growth. However, with growth in condominium apartment listings well-outstripping condo sales growth, condo market conditions were comparatively more balanced, which was reflected in a slower pace of price growth in that segment,” said Jason Mercer, TRREB’s Chief Market Analyst.
Over the same period, the overall average selling price was up by 20.1 per cent to $951,404. Annual detached and semi-detached sales growth was stronger in the comparatively more-expensive City of Toronto compared to the surrounding GTA regions, which helps explain why growth in the overall average selling price outstripped growth in the MLS® HPI Composite Benchmark
The ‘905’ Continues to Outperform ‘416’ for Sales, New Listings, and Affordability
In fact, the latest numbers show that activity in the 905 region outperformed levels in the ‘416’, for sales, the number of new listings, and for affordability in August.
While 10,775 transactions were recorded in the Greater Toronto Area (GTA) last month, the 905 region accounted for 7,41o of the sales — 4,045 more than in the 416.
In August, detached homes were a hot-ticket item in the 905, with realtors selling 4,330 listings, a year-over-year increase of 47.3%. Townhomes were also in demand, as 1,501 exchanged hands, up 46.4% from the same time last year. There were 750 condo sales last month, up 14.5% year-over-year, while semi-detached homes accounted for 727 sales, up an impressive 60.8% from August 2019.
Those in search of more affordability and options should definitely consider looking in the 905, as average prices for all home segments were significantly lower than the current averages throughout the 416, while the number of new listings available is notably higher. In August, the number of new listings in the 905 reached 11,100, a difference of 3,709 from the 416.
Detached homes reached an average of $1,088,559, up 18.5% year-over-year; semi-detached homes climbed 13.7% annually to $784,951, while the average price for a townhouse in the 905 is now $719,667, up 16%, and condo apartments are now sitting at an average of $540,491, a 12.9% increase from the same time last year.
What’s more, the average price for all housing types in the 905 is $923,656, which is $187,850 less than the current average price in the 416.
905 has seen tremendous growth this year and has outperformed the 416 in all aspects, something he believes will most likely continue to happen through to the end of the year.
We are seeing a demand shifting from condominiums to low-rise market segments; many families in the 416 are exchanging their condominiums for detached, semi, or townhome properties in the 905.
Low-interest rates, as well as low inventory, will continue to drive up prices in all segments
“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs,” says Lisa Patel, TRREB President.
For the second month in a row, Patel attributed the lack of travel amid COVID-19 to the increased activity in the GTA housing market, which has been satisfying pent-up demand from the spring when stay-at-home orders and travel restrictions were first implemented.
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