Jennifer English


16 October 2020
Jennifer English

September shows a solid increase year-over-year while seasonally adjusted continues leveling off


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

The average sale price continued it's double-digit increase year-over-year of 11.9% and, just like the past couple of months, seasonally it dropped slightly by 0.9%. Freehold properties have remained a Seller's market thereby having the most significant impact on the average price for all property types combined. Detached and semi-detached are sitting at 1.7 and 1.0 months of inventory respectively. Condo apartments on the other hand have more than doubled their inventory since last year, going from 1.6 to 3.5. Up as well from last month when months of inventory was 3.0.

Detached Properties in the City of Toronto

With an increase in active listings from last month it looks like Seller's continue looking to capitalize on the strength of this property type

The average sale price took a nice increase from this time last year, up 9.3%. As mentioned at the outset, all properties, seasonally, are leveling off in the average sale price category. Detached dipped 1.2% from August. 

Year-over-year the number of sales outpaced the number of new listings, again causing the active listings to drop by 12.4%. Even though active listings keep increasing every month, the inventory continues getting snapped up with buyer demand remaining consistently high. It's that pressure on the detached market creating the substantial price growth.

And the sale price to list price percentage took a jump this year to 103% versus September 2019 which was 101%, same as last month.

Semi-detached Properties in the City of Toronto

Semi's are still keeping in tow with detached homes though active listings in this property type did see an increase from last year

Here the average sale price increased 7.1% year-over-year and went down 1.8% from last month. Here too, the number of sales increased from last year and from August, up 48.8% and 25.0% respectively. The crazy leap for semi's is seen in active listings, increasing by 125.7% from September 2019. Just like with detached homes, the buyer demand is keeping inventory way down. With just shy of 1 month of inventory that means in just one month, all inventory would be gone!

While new listings far surpassed the number of sales in September 2020, actual active listings was less than number of sales. Again, here is where we see intense buyer demand on the semi market absorbing the inventory almost as fast as it becomes active and driving prices higher than last year.

Condo Apartments in the City of Toronto

Ahh condos, while still gaining price strength year-over-year, this property type continues to struggle against COVID-19

Up 7.8% from September 2019, which is actually impressive, given inventory has more than doubled since then. Nice to see there was also a slight price increase since last month of 1.9%. 

It will be interesting to see October's numbers, and November's too, now that the Government has announced opening it's borders to international students as of October 20th. This could be what the condo market needs to begin a resurgence. Hopefully it will lead to increased rental demand and, in turn, slow the amount of inventory coming to market as investors will have opportunity to get their investment condos cash-flowing.

Where the scales remain uneven in the condo market are the number of sales, only up 6.8%, whereas new listings went up 96.0% and active listings 134.0%. Working from home, some people choosing to continue home schooling, some getting out of Toronto altogether, (specially with not having to commute presently), and a greater than ever desire for personal outdoor space, are some of the contributing factors that have moved buyers toward freehold properties. And, the condo investor segment has slowed dramatically due to the decreased rental demand. I have to say, for those willing to take on some risk, provided it's "smart risk", it's actually a good time to buy a condo! We haven't seen inventory like this for years. In fairness I should add a caveat, unique condos, those with excellent layouts and some added flare, haven't suffered at all, whether for sale or for lease. Oftentimes things that "stand-out", even if a little bit from the rest, ride the waves with more ease and suffer less impact under extenuating circumstances.

That's a wrap till next month when we see what October's numbers reveal.