August 2020 Toronto Real Estate Market Report
August’s residential resale market performance was record-breaking. Almost 10,775 properties were reported sold, a 10.5% increase compared to the 9,363 properties sold a month earlier. Compared to August 2019, sales improved by 40.3%. There were 7,682 residential properties reported sold last year in the same month. August numbers are confirmation that the Toronto real estate marketplace continues to rebound from a largely absent Spring market. This is supported by a very low average 17 days on market (DOM) for homes to sell.
Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions, largely driven by low-rise housing (detached, semi-detached, and townhouses). Sale of condominium apartments were up as well, but to a much-lesser degree. In August the average sale price for all properties sold in the greater Toronto area came in at $951,404, another record-breaking average sale price, beating out July’s record of $943,719. By comparison, last August the average sale price was only $792,134. In spite of the 2020 Covid-19 pandemic, today’s average sale price is 20% higher than only a year ago.
In the City of Toronto, the average sale price is even higher. It came in at $1,012,506. This number is particularly impressive when it is remembered that it includes 9,348 condominium apartment sales out of a total of 19,082 properties reported sold. Subtracting condominiums from this and the average came in at $1,505,000. It is also worth noting that the higher end of the marketplace exploded in August. In August 231 properties having a sale price of $2 million or more were sold. By comparison, only 98 properties in this category were reported sold last year, an eye-popping increase of 236%. This is likely due to the resurgence of equity markets that have bolstered the confidence of purchasers of higher-priced properties and possibly due to fewer people being on vacation this year over last year.
The entire residential market has not reacted to the pandemic and its impact on the local economy equally. August saw a big increase in inventory of condominium apartments. This could be due to the changes to municipal regulations around short-term rentals and also the landlord-tenant relationship implications arising from Covid019.
In August condominium sales were down 15% compared to last year. Sale prices, however, rose by 9.8% to $685,471 in the greater Toronto area. In the City of Toronto’s central core, the average sale price was a stunning $839,895.
Early September results indicate that the resale market will produce strong numbers once again this month. Sales recorded in the first week of September are up 75% over the same period in 2019. Mortgage interest rates of less than 2% will continue to propel the Toronto and area resale market, even in the face of the negative economic impact of the pandemic. Those rates are expected to remain low over the next 12-15 months.