Home sales in Toronto were up again year-over-year for the fourth month in a row. 10,563 sales as reported through the Toronto Regional Real Estate Board’s in October 2020. This was up by 25.1% compared to 8,445 transactions in October 2019.
Sales and new listings reached record levels for the month of October. However, year-over-year growth rates for sales and new listings diverged in some market segments. In the Toronto luxury home market segment, the pace of annual sales growth far outstripped growth in new listings. Conversely, the condominium apartment market segment experienced more than double the new listings compared to October 2019, whereas sales were only up by 2.2% over the same period.
Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many Toronto neighbourhoods. In contrast, condo buyers have benefitted from much more choice compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend with a stall in economic growth and a halt to tourism impacting cashflows for many investors.
The MLS® HPI Composite Benchmark was up by 10.8% on a year-over-year basis in October 2020. The average selling price for all home types combined was $968,318 – up by 13.7% compared to $851,877 in October 2019.
Year-to-date home sales through October were above last year’s level. The economic recovery in some sectors coupled with low borrowing costs has kept home purchases top-of-mind for many Toronto residents. Expect record or near-record home sales for the remainder of 2020.
“Toronto’s Luxury Real Estate Authority”