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Barry's Market Commentary
Who would have thought we’d have a thriving real estate market during a pandemic? The real estate market continues its upward trend as home sales in the GTA were up again year-over-year for the fourth month in a row!
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Toronto Real Estate Board members sold 10,563 residential homes in October, up 25.1 % compared to 8,445 transactions in October 2019.
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Sales and new listings reached record levels for the month of October, but sales outstripped new listings, so our tight seller’s market continued with the average selling price for all home types combined reaching $968,318 – up 13.7 % compared to $851,877 in October 2019.
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Though the market overall is incredibly strong, there really is a tale of two markets going on, as houses and condos are performing wildly different.
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Square footage has become paramount as a result of covid, causing the detached market annual sales growth to far outstrip the growth in new listings, and prices have increased sharply. The average selling price for detached homes in the city was $1,470,000, a 11.2 per cent increase. While the 905 area saw average prices rise by 18% to $1,124,000 as people seem to have accepted that they will be working from home for some time and might as well have some more space.
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Condos on the other hand are experiencing a pull back in prices due to the lack of immigration, travel, in person classes at universities/colleges, and investors looking to cash out after a strong run. New listing inventory has more than doubled, wiping out considerable growth, and prices are now flat year over year, with an average selling price of $622,122.
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Given the incredibly low interest rates, we are starting to see some good investment opportunities present themselves in this segment. If you have been thinking of getting into the condo market, over the last few years, this could be an opportune time.
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Going forward, there will be bumps in the road as the covid numbers escalate and are offset by the promise of a vaccine. I expect the strong growth in prices and sales to continue for the foreseeable future as buyers take advantage of the low interest rates and embrace the need for more space and flexible work conditions. It should also be noted that all of the activity in the market is largely without the presence of foreign buyers due to travel restrictions. I believe that once borders open up, there will be a flood of foreign investment coming into the GTA as I think you will agree that our government has handled this pandemic as well as any, adding further to the list of reasons why the GTA is a prime destination for foreign buyers.
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If you ever have any questions regarding the market or your home, feel free to reach out to me anytime at (416) 223-1818.
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I’m never too busy to talk about real estate!
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All the best and stay healthy,
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Barry
