TORONTO HOME PRICES CONTINUE TO CLIMB TO RECORD HIGHS
Toronto, Nov 6,2020
Home sales in the Greater Toronto Area (GTA) were up again year-over-year for the fourth month in a row. Our Members made 10,563 sales as reported through the Toronto Regional Real Estate Board’s MLS® System in October 2020. This was up by 25.1 per cent compared to 8,445 transactions in October 2019.
Sales and new listings reached record levels for the month of October. However, year-over-year growth rates for sales and new listings diverged in some market segments. In the detached market segment, the pace of annual sales growth far outstripped growth in new listings. Conversely, the condominium apartment market segment experienced more than double the new listings compared to October 2019, whereas sales were only up by 2.2 per cent over the same period.
Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many GTA neighbourhoods.
The average selling price for a house in the city climbed up to $1,025,925. Semi-detached Toronto homes averaged $1,154,087. Detached Toronto homes are 11.2 per cent higher than this time last year, averaging $1,470,857 while detached in 905 are 18 per cent higher than this time last year averaging $1,123,886.
In contrast, condo buyers have benefitted from much more choice compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend with a stall in economic growth and a halt to tourism impacting cashflows for many investors.
October condo sales in Toronto are down 8.5 per cent year-over-year. The decline is noteworthy for the Toronto real estate market considering that active listings are up by a whopping 173 per cent. That’s close to three times the number of condos sitting on the market while sales are declining.
Year-to-date home sales through October were above last year’s level. The economic recovery in some sectors coupled with low borrowing costs has kept home purchases top-of-mind for many GTA residents. With this being said, we have not accounted for all of the pent-up demand that resulted from the spring downturn. Expect record or near-record home sales for the remainder of 2020.