What's happening in the Toronto housing market right now

What's happening in the Toronto housing market right now

The Toronto Real Estate Board just released its June numbers, and they're looking good. Really good, in fact, especially considering what we've all just been through - and what we're still going to be experiencing for the foreseeable future.

Compared to April and May, the June market rebounded in a VERY big way. June transactions jumped an incredible 89% over May. That's right - the number more than doubled, with 8,701 transactions compared to May's 3,546. Average price is up 9.8%. And even with all the uncertainty caused by COVID, the overall number of sales for the month was only down 1.4% from June of last year.

Right now, the number of active listings is at a historic low...they're down 28.8% from June 2019, which means the competition for listings is going to heat up even more - and prices will keep going the way they always seem to go in Toronto... UP. That's great for sellers, but it's going to make things even more challenging for buyers.

Ipsos polling results on consumer buying and selling intentions emphasize that growing trend even further. 27% of respondents said they were very likely or somewhat likely to buy a home over the next 12 months. The number of people who said they would be listing their homes, however, is a lot lower, with only 21% saying they'd sell (a huge drop from June 2019, when that number was 32%). That means the disparity between available listings and buyer demand will just keep getting wider, impacting affordability.

Toronto Condo Market Report June 2020
Property.ca Toronto Market Snapshot June 2020

The GTA housing market by the numbers

Semi-detached homes in the 416 led the way in price growth: they jumped 22% year over year, followed by detached homes in the urban 416 markets at 14.3%. Detached homes and towns in the 905 were up 11.7% and 11.6% respectively.

Condos in the 416 saw the smallest year-over-year growth at 5.6%, but that doesn't come as a big surprise. Fewer investors are moving money into the Toronto market (thanks to changing Airbnb rules, a COVID-related halt in tourism and other factors) and more condo dwellers are leaving condo life behind for the larger square footage of a house - either in the Toronto market or outside of it.

Rentals are WAY up, with 31.9% more listings this year over last. That's the impact of COVID on Airbnb units making its mark: with no one visiting Toronto due to quarantine, they've been sitting empty, and investors are listing them for long-term rentals, adding thousands of units to the market.

Overall, prices were up 11.9% from June of last year, at $930,869 over $831,882. And while that doesn't quite match the record-breaking numbers we were seeing pre-COVID, it's healthy growth - especially considering we're surrounded by so much uncertainty.

About Ryan Wykes, SVP of Sales

Ryan is a top performer, dedicated leader and mentor, and a gifted negotiator with a thorough understanding of business and marketing, especially in the Toronto real estate market. He’s been with condos.ca since 2012. Get in touch with Ryan today.

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