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After months of uncertainty in the Greater Toronto Area (GTA) housing market, the latest monthly report from the Toronto Regional Real Estate Board (TRREB) is showing that the market is rebounding in a big way, including a record result in sales for the month of August. A total of 10,775 residential sales recorded in the region last month represents a massive 40.3% spike compared to the same period in 2019, showing that buyers have re-emerged in full force after months of market slump through the COVID-19 pandemic.
This year-over-year increase affected all major home types across the region, with the low-rise market segments like detached and semi-detached houses and townhouses being the primary drivers of sales growth. Condominium sales were up annually, though not with the same intensity recorded in low-rise segments.
“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs. In addition, fewer households have chosen to go on vacation as a result of COVID-19 and instead have remained in the GTA and been active in the housing market, satisfying pent-up demand from the spring,” reads a statement from TRREB President Lisa Patel.
Year-over-year growth was also recorded in the number of new listings as well as the number of active listings remaining at the end of August, 2020. This was most pronounced in new condominium listings, outpacing all other market segments. “Generally speaking, market conditions remained very tight in the GTA resale market in August. Competition between buyers was especially strong for low-rise home types, leading to robust annual rates of price growth. However, with growth in condominium apartment listings well-outstripping condo sales growth, condo market conditions were comparatively more balanced, which was reflected in a slower pace of price growth in that segment,” reads a statement from Jason Mercer, TRREB’s Chief Market Analyst.
This sudden surge in competition fuelled a steep increase in overall average selling price, rising 20.1% in August to $951,404. This price growth was strongest in the City of Toronto, helping the average selling price to almost double the 11.1% year-over-year increase in the MLS® Home Price Index Composite Benchmark.
“With demand for ownership housing continuing to recover, it will be important for policy makers to remain focused on the longer-term goal of bringing more housing supply on line, especially as we return to a normal cycle of immigration. We have to focus on supply both in the aggregate and in terms of a greater diversity of home types. This will be key in addressing housing affordability in the GTA moving forward and keeping the region competitive in attracting businesses and talent from around the world,” reads a statement from TRREB CEO John DiMichele.
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