The Toronto Regional Real Estate Board (TRREB) report for October, 2020 shows that the Greater Toronto Area (GTA) is continuing to weather the Covid storm, outpacing expectations with another record-setting month in October, 2020, during which a total of 10,563 sales were made in the GTA resale home market, an over 25% leap from the 8,445 sales recorded the previous October.
Toronto skyline, image by Forum contributor mburrrr
Record-level sales were complemented by record listings, with 17,802 across the region versus the 13,053 in October, 2019. Despite the overall increase in listings, these numbers diverged in certain markets, like the detached home segment, where the pace of annual sales growth greatly outpaced listings. At the other end of the spectrum, the condominium segment experienced over double the listings seen in October, 2019, while sales only increased by 2.2% in the same window.
“Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many GTA neighbourhoods. In contrast, condo buyers have benefitted from much more choice compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend with a stall in economic growth and a halt to tourism impacting cashflows for many investors,” reads a statement issued by TRREB President Lisa Patel.
Home prices have been steadily inflating in the past several months, and October, 2020 was no different. The average selling price for all combined home types rose 13.7% year-over-year, up to $968,318 from $851,877 in October 2019.
“Year-to-date home sales through October were above last year’s level. The economic recovery in some sectors coupled with low borrowing costs has kept home purchases top-of-mind for many GTA residents. With this being said, we have not accounted for all of the pent-up demand that resulted from the spring downturn. Expect record or near-record home sales for the remainder of 2020,” reads a statement from Jason Mercer, TRREB’s Chief Market Analyst.
TRREB maintains a positive outlook on the housing market in the months and years to come, with TRREB CEO John DiMichele stating that “beyond COVID-19, it is clear that the high demand for housing will continue. The federal government has set immigration targets above 400,000 people for each of the next three years. The GTA will undoubtedly continue to benefit from this population growth. All of these people will need a place to live, whether in the ownership or rental markets.”
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