The GTA housing market is making a comeback after facing significant impacts from the COVID-19 pandemic, with home sales shattering the July record.
Compared to July 2019, there was also a 29.5% increase, a new record for the month.
The key driver for year-over-year sales growth was largely driven by low-rise home types, particularly in regions surrounding Toronto. Condominium apartment sales were also up on an annual basis, including in the city.
Home listings also saw a significant increase this month, with year-over-year listings at 24.7%, but the growth was less than sales, meaning market conditions “tightened on average” compared to July of last year.
In addition, active listings at the end of July were down by 16.3%.
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“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,” TRREB President Lisa Patel said.
“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.”
When it comes to home prices, there was also an increase but not as drastic as home sales.
For July 2020, home prices were up by 10% compared to the same time last year.
The overall average selling price was also up by 16.9% year-over-year to $943,710, and up by 5.5% compared to June.
According to TRREB, price growth was strongest for low-rise home types, notably within Toronto.
The real estate board also noted that the city’s recent approval to create more “middle housing” or mid-density residences, for some of its neighbourhoods is a step in the right direction for more affordable housing.
Mid-density housing is seen as a solution to improve housing affordability, which TRREB believes should be expedited.