Even with COVID-19 stifling many businesses in the short term, it seems that after an initial pause on the market early in the pandemic things are starting to pick up at a rapid pace.
We are seeing sales picking up and showings of properties on the market are coming back to normal as well. We are very optimistic on sales numbers for the rest of the summer leading into fall with the introduction of Phase 3 across many areas of the country.
We also see preconstruction projects picking back up from a temporary pause in March and April.
We see sales prices per property continue to climb which shows continued appreciation in our client’s purchases.
Please reach out to us to get our thoughts on where we see the market going and where we see the opportunities for our clients.
Sales activity was extremely strong for the first full month of summer. Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with pent-up demand from the COVID-19-related lull in April and May being satisfied in the summer, as economic recovery takes firmer hold, including the Stage 3 re-opening.
In addition, fewer people are travelling, which has likely translated into more transactions and listings.
A gradually improving labour market and historically low mortgage rates are expected to support a recovery in home sales in the second half of 2020 along with sustained year-over-year price growth.
Given that home sales result in substantial spin-off expenditure in the regional economy, the housing market will be an important driver of overall economic recovery this year and into 2021.
The MLS® Home Price Index Composite Benchmark was up by 10.01 per cent year-over-year in July The average selling price for all home types combined was $943,710 – up by 16.9 per cent compared to July 2019. The seasonally-adjusted sales and average selling price was also up substantially compared to June 2020, by 49.5 per cent increase in sales and 5.5 per cent increase in selling price.
Average and benchmark selling prices were up year-over-year for all major home types. The strongest average annual rates of price growth were experienced in the detached and semi-detached market segments in the City of Toronto at 12.2 per cent and 13.2 per cent respectively. This, coupled with the fact that average selling price growth outstripped growth in the MLS® HPI benchmarks, points to a resurgence in the higher-end market segments.