This is the definition of a Seller’s Market, folks. Low inventory, matched with increased buyer interest as well as extremely low borrowing costs following the first wave of COVID-19 has resulted in record-level sales in September.
- The Toronto Regional Real Estate Board reported 11,083 home sales in the GTA; an increase of 42.3% over September 2019 and a new record for the month of September in the area.
- This record third quarter marks an increase of 1% compared with January to September 2019.
- New listings across all market segments were down on a year-over-year basis by almost 5%.
- Sales growth on a year-over-year basis was driven by low-rise home types.
- Average selling price was up 14% year-over-year to $960,772, driven largely by the low-rise market segments.
- Finally, the MLS® House Price Index (HPI) - which considers the overall value for each property type within specific markets over an extended period of time, not just the ones that are selling - was up by 11.6% compared to September 2019. Read more about HPI implications in the April Market Update.
“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,” said Lisa Patel, TREBB Board President.
While volume of sales while comparing segments is hugely in favour of the condo market, 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. Price increases have also been driven by these ground-oriented market segments, resulting in a 14% increase year-over year; meanwhile, with more inventory to choose from, the condo market experienced a significantly slower growth in price.
“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,” said Jason Mercer, TRREB’s Chief Market Analyst.
Is now the time to buy? It might depend on what your desired areas and budget are. Is now the time to sell? YES.
What should you do if you’re thinking about buying or selling? Consider the above information and give Zubin, Mansoor or Karl a call. Market conditions are still changing and buyer interest is increasing daily. Let us make a plan that works for you based on price, location and timelines. We know our market and we’re here to help.
Read the full report here.
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Zubin Abuwalla | Direct: 416-389-8019
Mansoor Ahmed | Direct: 647-297-1721
Karl Abuwalla | Direct: 647-883-0874