Market Update for AUGUST 2020
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.
"Total residential transactions"
The strong rebound in Greater Toronto Area (GTA) home sales continued with a record result for the month of August. GTA REALTORS® reported 10,775 residential sales through TRREB’s MLS® System in August 2020 – up by 40.3 per cent compared to August 2019.
Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions. It should be noted that the low-rise market segments, including detached and semi-detached houses and townhouses, were the drivers of sales growth. Condominium apartment sales were up on an annual basis for the second straight month but to a lesser degree.
The MLS® Home Price Index Composite Benchmark was up by 11.1 per cent in August 2020 compared to August 2019. Over the same period, the overall average selling price was up by 20.1 per cent to $951,404. Annual detached and semi-detached sales growth was stronger in the comparatively more-expensive City of Toronto compared to the surrounding GTA regions, which helps explain why growth in the overall average selling price outstripped growth in the MLS® HPI Composite Benchmark.
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.
Both the number of new listings entered into TRREB’s MLS® System during the month and the number of active listings at the end of the August 2020 were up on a year-over-year basis. While new listings were up strongly for all home types, growth in new condominium apartment listings far outstripped growth in the other market segments.
"Sales To New Listings Ratio"
Sales to new listings ratio in Aug 2020 is 58% which is down by 7% compared to Aug 2019. (sales to new listings ratio for Aug 2019 was 65%)
What does 58% sales to new listings ratio mean? This means every 10 homes that are listed into market, almost 6 of them are being sold.
"MOI & DOM & Average SP/LP"
Above table shows; Semi-detached homes are fast selling property in the market and are being sold in average 5% over asking price.
* 416 means city of Toronto
** 905 means GTA excluding Toronto
In city of Toronto; number of sales in Aug 2020 for detached and semi-detached and condo apartment were down compared to August last year. But average price for all types of house was higher than same time last year. It is interesting that number of sales for Condo apartment in city of Toronto was 15.7% lower than last year and at the same time average price for this type of property was 9.8% higher than last year.
Outside of Toronto; number of sales for condo apartment were 19.1% lower than same time last year, but average price was about 11.5% higher!
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