Jennifer English

JUNE 2020 MARKET UPDATE

08 July 2020
Jennifer English

The June numbers show increases and a greater 'closing of the gap' in Toronto Real Estate

The recovery in Toronto real estate, since the onset of the COVID-19 pandemic, has been both positive & steady

Both Buyer and Seller confidence, at this time, are fully restored. Of significance, the Buyer demand continues putting a lot of pressure on a market that, while supply is improving, it by no means is anywhere near to matching demand.

First Up

The Average Sale Price for ALL  Property Types in the City of Toronto

The average sale price across all property types showed a significant double-digit increase year-over-year of 11.7%, and took another leap up from last month of 7.0%. Buyer's are out in full force and this demand is driving prices due to the continued low inventory. Detached homes currently sit at 1.8 months of inventory, semi-detached at 1.0, and condo apartments 2.4. Months of inventory is used to determine whether we're in a Seller's market, Buyer's market, or Balanced market. Toronto is continuing it's long run of being a Seller's market!

Detached Properties in the City of Toronto

Significant increases right where they should be

The average sale price increased 14.3% from this time last year going from $1,332,639 to $1,523,770. Last month, when the average sale price was at $1,422,273, it's climbed by 7.1%. Strong increases for this property type indicating we've come a long way in a relatively short period of time.

The three stats that remain down  year-over-year BUT up month-to-month are number of sales, number of new listings, and number of active listings. It's important to note for the number of sales that June 2020 is now only down 10.1% from last year. This versus last month when the year-over-year was down 63.4%. From May 2020 to June 2020, the number of sales took a monster leap, up 107%. 

Semi-detached Properties in the City of Toronto

What can I say, the stats for semi's are following in detached properties footsteps

Here the average sale price increased 22.0% year-over-year and 12.6% from last month. And, as with detached homes, the other three stats for semi's are down year-over-year and up from last month. Where semi's really closed the gap was in the number of new listings, now only down by 0.7% from the same time period last year. It will be interesting to see next month's numbers for all property types. I'd expect the gap will close even further and we'll start seeing the number of sales, new listings, and active listings up in year-over-year category which, for condo apartments, has already happened for it's number of new listings.

Condo Apartments in the City of Toronto

Condo Apartments broke away in some areas and tracked in others when compared to detached and semi-detached numbers

This was the only property type that went up year-over-year in the average sale price and had an ever so slight dip from last month. Selling on average for $672,465 in the month of June 2020, up from last year by 5.6% and down from last month by a tiny blip of 0.2%. 

As mentioned above, when it came to the number of new listings, condo apartments were the only property type to go up both year-over-year and month-to-month. The year-over-year increase is quite impressive at 35.6%. Particularly when compared to detached homes which were still down in this category by 66.7%. Semi's are hardly worth mentioning here as they were only down by 0.7%. The number of sales tracked the same as the other two property types and the number of active listings, being driven by the number of new listings, also saw an increase from both last year and last month.


When the pandemic first hit much of the chatter among professional real estate, as it pertained to Toronto's market specifically, was that the volume of sales and new listings would take a hard hit but that prices, for the most part, wouldn't be greatly affected. This hinged on the sales volume compared to the active listings tracking very similarly, which it did, thankfully. No one could tell at that time how long it would last which is still relatively true today. Even though things are re-opening and restrictions are being lifted, there remains continued uncertainty about COVID-19. What we do know right now, is that Toronto's real estate market is, more and more, reminding us of it's strength, and planting it'self on very solid footing.
 
Keep safe and stay healthy.