Market Watch | July 2020

Toronto Real EstateReal Estate Market
Written By Marco Chiappetta
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Market Report

A review of the Toronto real estate market from June 2020

Toronto Regional Real Estate Board President Lisa Patel announced that Greater Toronto Area REALTORS® reported 8,701 sales through TRREB’s MLS® System in June 2020. This result represented a very substantial increase over the May 2020 sales result, both on an actual (+89 per cent) and seasonally adjusted basis (+84 per cent), and was only down by 1.4 per cent compared to June 2019.

Year-over-year growth in sales was reported in some areas and market segments. Especially notable were the detached and townhouse market segments in the GTA regions surrounding the City of Toronto.

New listings were up slightly on a year-over-year basis by 2.1 per cent. However, active listings on TRREB’s MLS® System at the end of June 2020 were down by 28.8 per cent compared to June 2019. Growth in new listings will need to outstrip growth in sales for a number of months before active listings approach last year’s levels.

Historical Market Overview | Toronto Regional Real Estate Board

Sales history from across the Greater Toronto Area dating back to June 1996. This chart shows the number of active listings, new listings and sales in the region during the month of June from 1996 through 2020.

The MLS® Home Price Index Composite Benchmark was up by 8.2 per cent year-over-year in June. The average selling price for all home types combined was $930,869 – up by 11.9 per cent compared to June 2019. The actual and seasonally-adjusted average selling price was also up substantially compared to May 2020, by 7.8 per cent and 9.8 per cent respectively.

Average and benchmark selling prices were up year-over-year for all major home types. The strongest average annual rates of price growth were experienced in the detached and semi-detached market segments in the City of Toronto at 14.3 per cent and 22 per cent respectively. This, coupled with the fact that average selling price growth outstripped growth in the MLS® HPI benchmarks, points to a resurgence in the higher-end market segments.

Key Economic Indicators

  • Real GDP growth : -8.2%

  • Toronto employment growth : -10.9%

  • Toronto unemployment rate : 11.2%

  • Inflation [yr/yr CPI growth] : -0.4%

  • Bank of Canada overnight rate : 0.25%

  • Prime rate : 2.45%

Marco Chiappetta https://www.ResidencesToronto.com
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