Market Update for SEPTEMBER 2020
Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence.
"Total residential transactions"
Toronto Regional Real Estate announced that sales reported through TRREB’s MLS® System by Greater Toronto Area REALTORS® amounted to 11,083 – a new record for the month of September. This result was up by 42.3 per cent compared to September 2019.
Following a record third quarter, sales through the first nine months of 2020 were up by approximately one per cent compared to the same period in 2019.
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.
On a GTA-wide basis, market conditions tightened in September relative to last year, with sales increasing at a faster pace than new listings. With competition between buyers increasing noticeably, double-digit year-over-year price growth was commonplace throughout the region in September, resulting in the overall average selling price reaching a new record.
Year-over-year sales growth in September continued to be driven by ground-oriented market segments, including detached and semi-detached houses and townhouses. Annual growth rates were also higher for sales reported in the GTA regions surrounding the City of Toronto.
There were 20,420 homes listed in September 2020, up by 30.8% year-over-year.
"Sales To New Listings Ratio"
Sales to new listings ratio in Sep 2020 is 54% which is down by 4% compared to Sep 2019. (sales to new listings ratio for Sep 2019 was 50%)
What does 54% sales to new listings ratio mean? This means every 10 homes that are listed into market, almost 5 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 all GTA number of sale and average price for all type of homes were higher than the same time last year!
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