I often get asked by friends, family and clients “what is going on with the Toronto real estate market“? Let’s take a look at what was going on in the GTA with regards to sales and inventory.
Here is the skinny on the Toronto Real Estate Market for July, 2020!
The numbers are up from last year. We had 11,000 transactions in July, 2020 compared to 8,500 in July, 2019. Why did this happen? The 30% increase is due to Covid-19. We didn’t do much in the spring market, we were all hibernating and keeping safe indoors. Sellers that wanted to sell in the spring held off until the summer. To sum it up, our spring market has pushed into the summer.
GTA Housing Prices
The biggie here is the prices! Overall the prices are up 16%, up to an average of $963,000 for a place in the Greater Toronto Area. WOW! That really came from the freehold market because as you know, people got sick of living in their condos. If people can’t go to sporting events and concerts, then they wanted a backyard to throw the ball around in or enjoy music in their own backyard. So as much as we’ve heard of this mass exodus in the city, it is really just people diversifying. Some people are joining together and buying a house instead of a condo, some people are taking their money and buying a vacation home to take advantage of their work from home days, some people are giving up their Airbnb’s because that isn’t really a thing right now.
Condo Prices in the GTA
Overall the condo market was still up year over year. We had a 50% inventory increase when comparing July, 2019 to July, 2020. That means we had more months of inventory available for buyers. Most of the transactions happened between the $400,000-$700,000 category. 70% of transactions happened there while the $800,000 and up didn’t see as much activity. I think this trend is going to continue over the 12-18 months. I see the freehold market continuing to grow, as people want to move out of their smaller spaces and have a backyard. The condo market will remain flat for a little. As soon as the freehold market becomes unattainable to people, you will see people going back to buying affordable condo market.
I hope that helps everybody understand whats going on in the market right now and if you have any other questions, please feel free to call or text me at 416-728-5401.