Here’s a look at how our Toronto real estate market has progressed through 2020.
For today’s market update, I’ve included some compelling graphs from Richard Robbins International Inc. so you can get a better idea of where our market stands as we press further into the fourth quarter of the year. For year-over-year comparisons, we’ll be looking at September (the last month for which we have complete data).
On this first chart (above), you can see that September’s sales were the highest single-month total of 2020 so far. Our market’s inventory reached a high in April, but we’ve since dipped back down below two months of inventory. Keep in mind that a balanced market is represented by at least five or six months of inventory, so it’s clear that we’ve been entrenched in a seller’s market for at least three quarters of the year.
On this second chart (above), you can see that year-over-year price growth has been significantly high, while the overall sales volume almost doubled.
As evidenced by this third chart (above), 2020 not only got back on track after this spring’s pandemic shock, but it has even begun to outpace last year in terms of sales.
This last chart (above) is pretty interesting; the second quarter saw the effective height of the coronavirus and all the subsequent lockdowns, so its performance was understandably lackluster, but note the impressive third quarter rebound!
Overall, very low inventory has created a seller’s market for detached homes, semi-detached homes, and townhomes. Multiple offers abound, and prices are on the rise. While the condo market was fairly strong last year, it’s taken quite a hit in 2020; in the wake of COVID, there are a lot of people who are simply uncomfortable with the idea of living in a highrise building where they have to use the same elevator that countless other people use every single day. Perhaps those who have started working from home have realized that their small condominium is no longer cutting it.
More people than in recent years are leaving cities for that same reason—why settle for suboptimal urban housing that’s close to work when you no longer need to be close to work? In summation, our 2020 market has bounced back nicely from the initial impact of the pandemic, and prices are primed to stay strong or even rise further. Hopefully next year when COVID-19 abates, the severely impacted condo market will have its own comeback.
If you have any other questions about our market or need help with your upcoming real estate transaction, don’t hesitate to reach out to us by phone or email. We’re always happy to assist you.