Well here we are at the end of August and what a market!
July’s residential resale market was record-breaking! Almost 11,100 properties were sold in the GTA, a 28 percent increase over the 8,679 properties that sold in the previous month. Compared to July 2019, sales were up by almost 30 percent. July’s numbers are a testament to the resilience of the Toronto marketplace and the power of record-low mortgage interest rates.
It’s worth noting that the high-end market ($2+ million) was strong in July with a total of 452 properties sold. By comparison, only 185 properties in this category were sold last year – an eye-popping increase of 144 percent! There’s no doubt the rise of the equity markets has bolstered the confidence of these purchasers.
On the other hand, the pandemic had a negative impact on condominium apartment sales throughout the second quarter, but July showed some evidence of recovery. Sales in the central districts rose by 6.2 percent compared to 2019 with prices rising by 29 percent to an average of $1,033,659.
August results indicate that we can expect strong numbers, once again, although not quite as robust as July. Sales will be approximately 10 percent higher than August 2019. It certainly helps that mortgage interest rates are less than 2 percent at a time when Canada faces the negative economic impact of the pandemic. Those rates are expected to hold steady until the end of 2021.
The August numbers will be out shortly, you can check them out on my instagram @susanbandler late this week.