Jennifer English

AUGUST 2020 MARKET UPDATE

14 September 2020
Jennifer English

August continues the trend with solid increases year-over-year for the City of Toronto

Freehold properties continue to out-pace condos 

While the average sale price increased year-over-year for condos, along with detached and semi-detached properties, it's the increased inventory in the condo market that's putting it behind it's competitors. 

First Up

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

The average sale price across all property types took yet another big double-digit increase year-over-year of 23.7%. And, as with July, it dropped slightly month-to-month, for a second time by 0.5%. It's the freehold properties making the greatest impact on the averages for all property types combined. Detached and semi-detached remain a Seller's market with months of inventory sitting at 1.5 and 1.0 respectively, while condos tipped further into Buyer's market territory, now at 3.0 compared to 2.3 back in July.

Detached Properties in the City of Toronto

This property type continues experiencing amazing gains

The average sale price increased 20.8% from this time last year while the seasonal growth took a slight dip, down from one month ago by 2.3%. In fairness, it's no surprise that month-to-month decreased, with all of the continued talk in the media of a second COVID wave and significant focus on students returning to school, both aspects playing a significant role.

And while August typically sees a slow-down, as both Buyers and Sellers take in the remaining vestiges of summer, surprisingly this August shot up in both number of sales, up 64.3% from last year, and number of new listings, up 63.0%. It would appear Sellers want to capitalize on the hot streak in the detached market. Important to note is the fact that both new listings AND the number of sales increased neck-and-neck, which kept active listings down year-over-year, which produced the big rise in average sale price.


Semi-detached Properties in the City of Toronto

Semi's followed in detached homes footsteps, for the most part

Here the average sale price increased 21.9% year-over-year and went down 1.3% from last month. Here too, the number of sales and new listings took monumental leaps from this time last year, up 79.3% and 125.7% respectively. 

Where semi's strayed from detached, as a result of the number of new listings outweighing the increase in number of sales, active listings increased by 53.1% year-over-year versus detached homes decrease in this category of 6.3%. So, even though this brought the months of inventory up from last year, we're talking an increase from 0.65 in August 2019 to 1.04 in 2020, keeping semi's firmly planted in Seller's market territory and selling on average for 108% of list price.


Condo Apartments in the City of Toronto

This property type continues to see a rise in inventory

Condos experienced a nice price increase year-over-year of 8.7% and, as with it's counterparts, a marginal decrease from last month of 1.4%.

Perhaps the biggest news for this property type is yet another increase in inventory from last year and last month, going from 1.5 months of inventory a year ago to double that in 2020, and up three quarters of a point from July this year.

Where the scales really tip in the condo market, the number of sales, which are only up 8.9%, compared to the number of new listings, which rose by 117.1%. That's a big difference, resulting in active listings rising substantially. 

It's not just condo sales being impacted, it's also the condo rental market, and how that relates back to the sales market! Here is where COVID packed, and landed, a solid punch. With international students being denied entry into Canada for school; sporting events, concerts and the like not happening; very few executives making their way to Toronto for employment opportunities; all of this has led to short-term furnished rentals along with long-term furnished/unfurnished rentals rising exponentially in the market. As many condos are strictly for investment/income purposes, owners struggling to get their property leased are, in some cases, making the decision to sell. We'll see where it all lands. From my perspective, this is a temporary situation, it just depends when/what/how COVID unfolds to know when/what/how things turn around.