The easing of COVID-19 restrictions across the province coupled with pent-up housing demand led to record-breaking sales within the Toronto Region for the month of July.
The latest data from the Toronto Regional Real Estate Board (TRREB) showed that home sales across the Toronto Region were up on an annual basis in the strong double digits – increasing 29% year-over-year (y-o-y) to 11,081. In the City of Toronto alone, sales were up 15% y-o-y and 26% month-over-month (m-o-m) to 3,577. The average home price across all housing types also noted significant increases, rising 17% y-o-y in the Toronto Region to $943,710 and 21% in the City of Toronto to $1,017,320.
“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,” said TRREB President, Lisa Patel.
Detached House Sales Outside City of Toronto Up 48% Annually; Sellers Market Conditions Persist in Halton, Durham, Peel
Patel also highlighted that “sales growth was driven by low-rise home types, particularly in the regions surrounding the City of Toronto.”
Prospective home buyers with the ability to work remotely are increasingly seeking larger properties that need not be close to the city core, which spurred the remarkable growth in sales activity in Toronto’s surrounding regions this July.
The Durham Region for instance, saw a steep 52% annual increase in home sales this July. In terms of housing competition, buyers in Durham faced stiff competition for available inventory, with just 1,905 new listings hitting the market in July, a 1% increase y-o-y. As such, the sales-to-new-listings ratio (SNLR) for Durham was 83% this July, which meant fewer homes were available relative to the existing demand in the market. A seller’s market exists when the SNLR is greater than 60%. Last July, the SNLR for Durham Region was 55%, indicating a balanced market. A housing market is considered balanced when there is sufficient supply of homes to meet demand during a given period of time, which is typically when the SNLR is between 40% and 60%. In particular, detached house sales in Durham grew 52% annually, but new listings dropped by 9%.
Halton Region buyers also faced strong competition in July. Home sales grew 38% y-o-y with 1,198 homes being sold compared to 1,619 new listings being added to the market. There was a 43% increase in detached sales, but only a 24% increase in new listings y-o-y. The Halton Region as a whole also exhibited deeper seller’s market conditions with an SNLR of 74% compared to 68% last year.
In Peel Region, home sales increased 29% to 2,339 in July, while new listings grew 23% to 3,553. The market exhibited seller’s market conditions, with an SNLR of 66% – a similar level to last year’s 62%. Brampton and Caledon drove these sales increases, with annual changes of 36% and 69%. Detached house sales in the region saw a significant leap of 51% to 1,217 sales; Caledon led the pack with an 81% increase in detached home sales compared to a 49% increase in Brampton and 46% growth in Mississauga.
In York Region, there were 1,850 home sales, a 28% increase y-o-y, and new listings were up 14% with 3,306 new properties being added to the market in July. As such, housing competition was fairly balanced, with the region exhibiting an SNLR of 56%, almost identical to last year. By property type, detached house sales increased 37% annually; the top three York municipalities for increases in detached home sales were King (+154%), Georgina (+74%), and Aurora (+72%).
Detached and semi-detached home sales in the City of Toronto rose at the slowest relative pace, but still in the double digits. Detached home sales increased 27% and semi-detached sales 35% respectively on an annual basis this July, with 1,102 detached homes and 372 semi-detached homes changing hands. Competition for housing was balanced for the City of Toronto as a whole, with the SNLR at 52% compared to a seller’s market last year with an SNLR of 65%.
Freehold Average Home Prices Increases Were Double Price Growth in the Condo Sector
Across the Toronto Region as a whole, the average home price for detached and semi-detached properties each increased 16% to $1,154,356 and $915,451 respectively. The condo sector saw the average price rise at a much more modest pace – growing 8% to $647,470 for condo townhouses and 9% for condo apartments to $635,778.
Similarly, in the City of Toronto, the average home price for detached and semi-detached properties rose 26% and 20% respectively to $1,541,003 and $1,181,014. Condominium properties exhibited more restrained growth, with the average price for condo townhouses rising 7% annually to $724,655 and 9% y-o-y for condo apartments to $682,999.
Check out the infographics below to see how sales and average prices changed by home type for TRREB and the City of Toronto in July.
Note: Comments and stats highlighting the Toronto Region as a whole are a reference to the areas covered by TRREB, which include: Durham Region, Halton Region, Peel Region, York Region, Toronto, Dufferin County and Simcoe County.
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