Welcome to the September 2020 Monthly Update from Our Trusted Realtors.
Toronto Regional Real Estate Board (TRREB) released its Marketwatch report for the month of September 2020. The statistics are as follows:
- The total number of sales in September, 2020 was 11,083. This number is up 42.3% from the number of sales in September, 2019 when there were 7,791 sales. Sale of 11,083 homes translates to >357 homes sold every day for the entire month of September i.e. almost 15 homes sold every hour.
- The number of new listings was also up by 30.8%, a significant increase. However, the inventory still remains tight because the increase in percentage of homes sold is higher than the increase in the percentage of new listings.
- The average selling price for all home types was up by a whopping 14% on a YoY basis compared to September, 2019 at $960,772.
- The MLS Home Price Index Composite Benchmark is also up by 11.6% on YoY basis.
The following infographic paints a quick summary for you.
GROUND-REPORT & OUR ANALYSIS
So, we have had 3 straight record months – best July, August, and September ever. This record level growth has been sustained by improving economic conditions and extremely low borrowing costs. In particular, Durham, Halton, and Peel Regions remain in Sellers’ Market Territory.
For example, according to a Zoocasa report, home sales in Halton and Durham shot up 74% and 56% respectively in September. In Peel region, home sales shot up by 45% while home prices grew 18% to $904,963.
Here is a more detailed snapshot on types of home sold and average price increase in September, 2020.
The growth has been a tale of 2 cities. First, it is evident that majority of the growth has been in the 905 area.
Second, as we had first reported in July, the low-rise home types and the high-rise condominiums are headed in opposite direction. Toronto’s condo market weakness is especially apparent in the Downtown area, which saw a 215% annual increase in listings last month. GTA average rents declined by 11%.
Covid-19 has had an impact on the behavior of the home-buyer. Lack of new blood of tenants, more space requirements due to work-from-home requirements, higher risk of transmission in higher density dwellings, need for more outdoor space – are all contributing factors for such adaptive thinking.
HOW DOES THE FUTURE LOOK?
The second wave of COVID-19 has deepened the fear somewhat, but overall, at present, people have adjusted from their first experience. As the Government Support Programs start to fade out, we may see some debt challenges. But, on the whole we remain optimistic about the near and long-term future of Real Estate. In our opinion, it remains the best Financial Instrument for your investment and retirement planning strategy.
LINKS TO MEDIA REPORTS
Following are links to just a few of the media reports.
At OurTrustedRealtors, we pride ourselves on our focus to your personal and complete satisfaction. We view numbers such as sales results as nothing more than a reflection of our commitment to serve our clients. We believe success is not in the number of deals, but in the way we work with people and community. You can expect your real estate transaction with us to be a great experience. Your success truly is our success.
This fulfillment is more important to us than charging an unconscionable fee for our services. We charge 1% for listing your home. If you are buying a home, we give you a cash-back (a portion of the commission we receive from the seller) - usually, this cash-back ranges between 1 to 1.5%.