Toronto, Ontario, November 4th, 2020 - The Toronto Regional Real Estate Board’s monthly statistical report, “MarketWatch”, was released this morning showing that Toronto & GTA / Greater Toronto Area Realtors® reported 10,563 residential property sales overall - meaning all property types & styles across all of TRREB’s market area - through the TRREB MLS® system last month. Very strong for a Fall Market. That activity represents a 25.1% jump over the year-earlier period. The overall average sale price was $968,318, up 13.7%. One month earlier those figures were 11,083 sales averaging $960,772. All figures quoted herein are year-over-year comparisons unless otherwise specified.
Both sales volume and new listing volume figures were records for the month of October.
At first glance, it appears we’ve seen a significant and welcome increase in the supply of available homes with “New Listings” up 30.8% and “Total Active Listings” up 5.3%...but the reality is that much of that increase in inventory comes from the Condo Apartment sector as an increased number of both owner/occupiers and investors alike decided to list units for sale for varying reasons including falling demand from buyers as the pandemic persists and falling demand from short-term renters as many regions clamp down on AirBnB-type rentals.
New listings in the Condo Apartment sector were more than double the number last October. Sales, however, were up only 2.2%.
“Forward Inventory” is calculated by dividing the Total Active Listings figure by the Month’s Sales to give an idea of how many weeks or months of available inventory we have at a given point in time. As of month-end, that worked out to 1.64 months… unchanged from last month and stubbornly still on the low side by historical standards. Also very tight in the freehold sector of the market given that a lot of that inventory rests with the Condo Apartment sector as noted above. The FI figure was just under 2 months a year ago.
The “Absorption Rate” - the rate at which the market is “absorbing” new listings as homes sell - is calculated by dividing the month’s sales total by the month’s new listings. That worked out to .59 for November. It was .543 last month and .651 one year earlier.
In Metropolitan Toronto - “The 416” (area code) - 1,228 Detached homes sold, up 19.6%, at an average selling price of $1,470,857, up 11.2%. In the balance of the GTA - “The 905" (area code) - 4,035 Detached homes sold in November, up an incredible thirty-nine percent. The average selling price for that broader area was $1,123,886, up 18%.
Condo Apartment sales in Metro T.O. were off 8.5% to 1,228 units averaging $668,161, a slim gain of 0.8%. The balance of the Greater Toronto Area saw 822 of the units sell representing a 28.4% rise averaging $541,582, up 6.8%.
Lisa Patel, TREB President:
“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 neighborhoods. 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 cash flows for many investors.”
Jason Mercer, TRREB Director of Market Analysis:
“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.”
Bungalow demand continues to be extremely strong across Toronto and The GTA market areas. We expect this trend to continue well into the future for a number of reasons including limited supply; an aging population; larger lots, generally...
The average time it took to sell a home in Toronto and the GTA was 17 Days on Market… “26.1% faster” compared to last November’s 23 days.
We certainly do live in “interesting times”, don’t we?
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