Record Sales, Record Prices
The Toronto Regional Real Estate Board (TRREB) has announced the market data for September, and with 11,083 reported sales, a monthly sales record has been achieved for a third consecutive month. This represents a 42.3% increase over September 2019, with sales up for all major home types in both Toronto and surrounding areas. Total home sales through the first 9 months of 2020 have increased when compared to the same time last year, despite the inactivity experienced earlier this spring due to COVID-19.
Sales growth continues to be largely driven by the low-rise housing segments. Detached home sales were up 54.7% year-over-year (+28.1% in Toronto), semi-detached were up 53% (+48.8% in Toronto), and townhomes were up 46.9% (+21.5% in Toronto). The 905 continues to generate significant buyer interest, with roughly 77% of all low-rise sales taking place outside the City of Toronto.
Total condo sales were 2,376, a year-over-year increase of 14.6%. Though roughly two-thirds of activity occurred in Toronto, sales in the 905 saw an annual increase of 32.1%.
Both New Listings (+30.8%) and Active Listings (+5.3%) were up for September. While the number of new listings was up for all housing types, it is the condo sector inventory that continues to grow, while tightening in all other housing segments. Total housing inventory is now sitting at just 1.6 months. By comparison, there are 3.1 months of inventory for the condo sector, up from August.
Demand is being driven by historically low borrowing costs and improving economic conditions. Coupled with low inventory, the market is experiencing upward pressure on prices. At $960,772, this is an increase of 14% from the same period last year and represents a new record for average sales price. The MLS Home Price Index (HPI) Composite Benchmark (a more accurate indicator of market inflation) was up 11.6% over September 2019.
Looking at pricing by category, average prices were up across the board. Detached homes ($1,184,700) showed the biggest gains at +12.9%, followed by semi-detached ($922,269) at 10.6% and townhomes ($748,437) at 10.5%. Condos ($634,756) were up 6.6% year-over-year. Average prices for singles in the 905 were up 16.9% with the average sales price exceeding $1,100,000.
We are now in the Fall market, a historically strong period. This year is unlike any other on record. If you are thinking of buying or selling real estate, be sure to speak with your Harvey Kalles sales representative for all the latest intel on this rapidly evolving real estate market.