September was another surprising month for Toronto real estate. Over 11,000 homes changed hands, marking the third consecutive month we’ve seen this kind of volume. GTA-wide, the average sale price was $960,772. That’s a 14% year-over-year increase!
These numbers are impressive, but it’s important to note that freehold properties accounted for a disproportionate amount of September sales. As townhouses and detached / semi-detached homes are typically more expensive than condos, the average is skewed higher compared to months when condos sold at a faster pace. So, it’s best that we take the past month’s figures with a grain of salt.
That said, real estate is undoubtedly thriving at a time when other parts of the economy are struggling. Why? The number one reason is demand. COVID-19 lockdowns prevented home showings, so buyers were put on hold for several months. By the time the lockdown was lifted, people were antsy and ready to move. The other factor at play is the unprecedented cost of borrowing money. Lastly, the concept of ‘home’ has changed. Our homes have become our workplace, our kids’ schools, the gym, playground and more. Personal space is more important than ever, and it’s a force that’s driving buyers to choose freeholds over condos.
The other interesting tidbit about September, is that for the first time (maybe ever), the 905 market is leading the charge on price-growth. Have buyers decided that Toronto is over-saturated and over-priced? Only time will tell. We’ll keep an eye on this trend as we move into the winter months, and back into a potential lockdown.
The past three months have been a remarkable show of strength during an economically tumultuous period. Many market experts believe this pace cannot be sustained over the long term. CMHC’s prediction is that the fun is over: “Home sales in the Greater Toronto Area (GTA) will decline for the rest of this year, and then start to recover by 2021 Q1 and show growth throughout 2022.”
What do you think?
As always, I’m here to help you sort through the market and make the best decisions for you and yours. If you’re not sure where to start, get in touch!