Jennifer English

JULY 2020 MARKET UPDATE

18 August 2020
Jennifer English

The July numbers show strong price increases year-over-year for the City of Toronto

The greatest increase in both price and number of sales is coming from freehold properties

Condos, for the first time in over 5 years, are taking a backseat to detached, semi-detached, and attached/row homes. As freehold inventory remains super low, the number of active listings in the condo market has it moving toward a more balanced market. 

First Up

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

The average sale price across all property types showed another big double-digit increase year-over-year of 21.1%. It is down, ever so slightly, from last month, by 0.5%. The driving force behind this large increase comes from freehold properties, meaning you own the land beneath your feet. With inventory for detached homes sitting below 1.5 months and semi-detached well below the one month mark at 0.65, their prices are soaring. Condos on the other hand are hovering just below 2.5 months of inventory, almost double what existed in July 2019.

Detached Properties in the City of Toronto

A big price jump for these homes from this time last year

The average sale price increased 25.6% from this time last year while the seasonal growth was minimal, up from one month ago by 1.1%. It seems as though COVID has created a real estate market in which buyers are not only looking for increased space, but anxious to have outdoor space with their own back yards. Not only are these properties going like hot-cakes in the City of Toronto, the same is true for the GTA.

While pricing year-over-year shot way up, the number of sales took a big leap both last year and last month. 

Where things have leveled off in the month-to-month numbers is reflected not only in price, but the number of new listings and active listings.

 

Semi-detached Properties in the City of Toronto

Semi's got a little confusing this July and while prices rocked up, they strayed from detached homes in other numbers

Here the average sale price increased 20.3% year-over-year BUT, actually went down 8.3% from last month. This is part of the confusion given the general rule of thumb is, whenever inventory goes down, prices go up, and vice versa. Semi's, however, showed greater inventory a month ago than where they sit now. My thoughts, buyers are chasing down fully detached homes more than ever. With less demand on semi's, fewer competing offers, prices can be impacted as a result.

Where else did the semi create some confusion!? Well, the number of new listings went up year-over-year and month-to-month, BUT, active listings, they're down from both July 2019 and last month. This may contribute to explaining the lowering in prices from last month. Seeing inventory drop even though new listings increased means older inventory finally sold. When older inventory sells it's often for less dollars, thereby dropping the average sale price from last month along with the number of active listings available. Not so confusing once it's broken down!


Condo Apartments in the City of Toronto

The condo market is showing signs of a little softening for the first time in over 5 years

While prices increased both year-over-year and from last month, 8.8% and 1.6% respectively, this property type is moving toward a more balanced market with inventory sitting just under 2.5 months, almost 2 times that of semi's, and close to 1 month more than detached. In fairness, where the condo market remains it's strongest, is at the entry level up to $700-800K. Once you get past that, and certainly north of $1M, there are fewer sales. Without those 'big price sales' happening, it's understandable the overall average sale price won't increase as much.

The number of sales for condo apartments went up year-over-year by a small percentage, 4.5%, while seasonally had a strong increase of 31.2%. New listings and active listings were the two stats that really shot up from last year and, with the added inventory, it's not surprising we're seeing a more modest price increase.

It's not that the condo market is bad by any stretch of the means, just less of a seller's market.



 
That's a wrap for this month's market update. We'll see what's in store next month as we move toward the Fall market.