With months of pent-up buyer demand combined with the gradual reopening of the GTA in June, the stage was set for a very active Real Estate market, and the numbers did not disappoint.
According to the Toronto Real Estate Board (TREB), the average selling price across all home types rose to $930,869, up 11.9% compared to June 2019. Since the COVID lock down began, we have seen a considerable reduction in the number of sales in both April and May, however, actual June numbers were up by 89% when compared to May and were down only a 1.4% compared to June 2019. Clearly, home buyers and sellers were ready to come back to the market and they were serious!
TREB June 2020
While prices rose across all types of properties, it is noteworthy to mention that the prices of detached and semi-detached homes really drove this price increase, particularly in the City of Toronto where we saw a 14.3% and 22% increase in sales price respectively. This is an interesting shift from conditions last year, where we saw the condo segment being the key driver of price growth.
TREB June 2020
For years, the GTA market has been plagued with a consistent lack of supply driving high price appreciation. If the numbers we saw for June continue to persist, we will once again find ourselves in a strong sellers market.
Of course, this year we have other factors that will play a critical role in shaping the GTA real estate market for the rest of 2020 and beyond. How will the COVID pandemic progress? What will the overall impact on the economy be and how will it affect immigration? These are questions to which nobody has answers. Earlier in this pandemic, many economists were predicting double digit price decreases in hot spots such as Toronto and Vancouver. More recently, most have taken a more moderate view, predicting lower single digit declines (3% in Toronto), but likely not until the end of 2020 or into 2021.
We know that the GTA market is incredibly resilient but as with every market, we must expect ups and downs. However, time and again, owning real estate in the GTA has proven to be part of an excellent long-term strategy for building wealth. If you’re thinking of buying or selling your primary residence or thinking about an investment property, reach out to me and let’s talk!
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