Greater Toronto Area Fall 2020 Real Estate Market Report
After more than six months of pandemic uncertainty, the Toronto real estate market is looking forward to growth this fall and the emergence of some new trends among buyers.
After the almost complete stoppage in activity we experienced at the start of the pandemic, the Canadian housing market is expected to see an increase in activity for the remainder of 2020. According to the RE/MAX Fall Market Outlook report, the average residential sale price in Canada could increase by 4.6 percent during the remainder of the year.
If August is any indication, we can expect to see a continuation of low listing inventory and high demand, making the fall a potential sellers market. We hope that as buyers and sellers are more comfortable with the COVID-19 safety protocols and Ontario enters phase three of re-opening, we will see an uptick in new listings.
August sales were 39.7% higher than last year and set a Toronto Regional Real Estate Board (TRREB) record for August. The average sale price was $951,404, 20.1% above August 2019 and the highest ever average sale price for the GTA. Homes were on the market for an average of 17 days.
Even when influenced by the lower demand and higher inventories due to the virus effect, condo values still beat the averages seen in August 2019 and appreciation gains over the last 12 months stayed strong. August saw detached homes in the 905 appreciate by an average 18.5% while sales were up over 47%. Condominium sales in the 905 were up 14.5% while average sale prices rose by 12.9%.
What’s really fascinating is the new trans that has emerged among home buyers since the start of the pandemic. As we moved from our offices into our homes, Canadians were showing more interest in suburban and rural homes. As people reassessed their living situations, the focus shifted from urban centres to the spacious suburbs, where homes with larger rooms, backyards and close to green spaces were more accessible.
According to a survey conducted by Leger on behalf of RE/MAX Canada, 32 per cent of Canadians no longer want to live in large urban centres, and instead would opt for rural or suburban communities. This trend is stronger among Canadians under the age of 55 than those in the 55+ age group. According to the survey, 44 per cent of Canadians would like a home with more space for personal amenities, such as a pool, balcony or a large yard.
As we move into the fall season, all signs are pointing to a very busy real estate market. With buyers unwilling or unable to view inventory over the last six months, there is now pent-up demand for homes. Sellers have become more comfortable with and aware of the safety protocols agents have put in place and are feeling better about listing their homes. Add the low interest rates now being offered and home ownership for the remainder of 2020 is looking very attractive and affordable.