Mississauga Real Estate

Is the Real Estate Market Going to Crash?

Is the Real Estate Market Going to Crash?

While many areas of the economy have contracted, the housing market has stayed remarkably strong. But can the good news last?

 

When COVID-related shutdowns began in March, real estate brokers and clients scrambled to respond to the shift. Record-low interest rates caused some lenders to call a halt to new underwriting, and homeowners debated whether or not to put their houses on the market. However, those first days of uncertainty ushered in a period of unprecedented growth in the Canadian residential real estate market, which currently accounts for a record-setting 9% of the country’s overall economic output.1

 

Now, as the spring market approaches, you may be wondering whether the good times can continue to roll on. If you’re a homeowner, should you take advantage of this opportunity by putting your home on the market? If you’re a buyer, should you jump in and risk paying too much? Below we answer some of your most pressing questions.

 

 

Why are home prices rising during an economic downturn?

 

At the beginning of the pandemic, fears of an economic recession were top of mind for homeowners all across the country. Overall, credit product origination declined across a variety of sectors, including car loans and credit cards, and government forbearance programs were put into place to cushion the blow of anticipated economic hardships. However, strong demand —coupled with ultra-low inventory and interest rates—caused real estate prices to continue to rise. The national average resale price soared 17% during 2020, and mortgage originations showed year-over-year growth of almost 30% on the strength of renewals and refinancing in response to record-low interest rates.1,2

 

According to the Bloomberg-Nanos Consumer Confidence Index, confidence in Canada’s real estate industry reached its highest level on record during the thick of the pandemic.3  Montreal Chief Economist Douglas Porter attributes much of the ongoing strength of Canada’s real estate market to a simple matter of consumer choice and priorities while noting that the downside of the resulting rise in home values is increasing consumer debt.1

 

 

Are we facing a real estate bubble?

 

A real estate bubble can occur when there is a rapid and unjustified increase in housing prices, often triggered by speculation from investors. Because the bubble is (in a sense) filled with “hot air,” it pops—and a swift drop in value occurs. This leads to reduced equity or, in some cases, negative equity conditions.

 

By contrast, the current rise in home prices is based on the predictable results of historically low interest rates and widespread low inventory. Basically, the principle of supply and demand is working just as it is supposed to do.

Effects of low interest rates

The Bank of Canada projects continuing low interest rates until sometime in 2023, aiding in economic recovery and increasing affordability.4 This helps offset the effects of high home costs even in markets where real estate might otherwise be considered overpriced. These low interest rates should keep the market lively and moving forward for the foreseeable future.

Effects of low inventory

Continuing low inventory is the primary reason for higher-than-average home prices in many markets.5 This should gradually ease as an aggressive vaccination rollout and continuing buyer demand drive more homeowners to move forward with long-delayed sales plans and as new home construction ramps up to meet demand.6

 

 

Aren’t some markets and sectors looking particularly weak?

 

One of the big stories of 2020 was a mass exodus from attached home communities and high-priced urban markets as both young professionals and families fled to the larger square footage and wide-open spaces of suburban and rural markets. This trend was reinforced by work from home policies that became permanent at some of the country’s biggest companies.

 

Not surprisingly then, one of the hardest-hit sectors of the residential real estate market has been the rental market, especially in population-dense metropolitan areas. The rise in vacancies has been fueled by several factors, including less international migration, fewer student renters, and less tourist demand for short-term rentals.7

 

Interestingly, landlords have not responded to these vacancies with lower rental rates, which have actually risen nationally. Instead, most have used incentives like lower deposit fees, free utilities, and move-in bonuses to attract renters. This suggests that most property owners expect demand to return to normal quite quickly as the vaccine rollout begins to take effect.7

 

Some analysts predict a decline in the Canadian housing market at large due to the impending end of government emergency measures and lender deferrals. However, others point to the increased demand for homes in smaller markets and lower-density areas outside of the country’s urban centers as an optimistic indicator, especially since these distant suburban and rural enclaves don’t normally benefit from increases in home values or an influx of new investment.8 As many of these new residents set up housekeeping in their rural retreats, they’ll revitalize the economies of their adopted communities for years to come.

 

According to Susan Hosterman, a senior director at Fitch Ratings, another strength that may help to alleviate the effect of financial pressures brought about by the ending of emergency measures is the relationship lenders in Canada have with their borrowers. Canadian lenders tend to be proactive in offering modifications to make loans more affordable for struggling homeowners.8

 

 

How has COVID affected the “seasonal” real estate market?

 

Frequently, the real estate market is seen as a seasonal phenomenon. However, the widespread shutdowns in March 2020, coming right at the beginning of the market’s growth cycle in many areas, has led to a protracted, seemingly endless “hot spring market.”

 

The Canadian Real Estate Association (CREA) revised its 2021 Market Forecast based on more robust than usual figures for the second half of 2020. The new projection anticipates improvements even over 2020’s record-setting market figures, with potential sales limited only by the availability of inventory in most markets.9 Thus, we could be looking at another longer-than-usual, white-hot real estate market.

 

 

What’s next for the Canadian real estate market?

 

Projections vary widely, with some economists predicting a market correction and others predicting continuing strong growth. Overall, low inventory and lack of affordability appear to be the more negative factors applying downward pressures on the market, while pent-up demand and a return to normal employment and income levels, along with anticipated higher-than-average growth in the economy, point to ongoing good news in the sector.10

 

According to most indicators, the real estate news looks overwhelmingly positive throughout the rest of 2021—and possibly beyond. Pent-up demand and consumer-driven policies, along with a continued low-interest-rate environment and rising inventory, should help homeowners hold on to their increased equity without throwing the market out of balance. In addition, the increase in long-term work-from-home policies promises to give a boost to a wide variety of markets, both now and in the years to come.

 

 

STILL HAVE QUESTIONS? WE HAVE ANSWERS

 

While economic indicators and trends are national, real estate is local. We’re here to answer your questions and help you understand what’s happening in your neighbourhood. Reach out to learn how these larger movements affect our local market and your home’s value.

 

 

Sources:

  1. Huffington Post –
    https://www.huffingtonpost.ca/entry/house-prices-canada-bmo_ca_600c7a98c5b6d64153ac675b
  2. Global Newswire –
    https://www.globenewswire.com/news-release/2020/08/18/2079742/0/en/COVID-19-Pandemic-Drives-a-Decline-in-the-Use-of-Credit-as-Canadian-Consumers-and-Lenders-Brace-for-Uncertainty.html
  3. Weekly Bloomberg Nanos Canadian Confidence Index –
    https://www.nanos.co/wp-content/uploads/2021/01/2021-01-08-Bloomberg-Weekly-Report-with-Tabs.pdf
  4. Bank of Canada –
    https://www.bankofcanada.ca/2021/01/fad-press-release-2021-01-20/
  5. Toronto Star –
    https://www.thestar.com/business/real_estate/2021/01/27/supply-of-new-homes-in-the-gta-dwindling-amidst-sales-boom.html
  6. Bank of Canada Monetary Policy Report –
    https://www.bankofcanada.ca/wp-content/uploads/2021/01/mpr-2021-01-20.pdf
  7. CTV News –
    https://www.ctvnews.ca/business/cmhc-rental-vacancies-prices-edged-up-as-covid-19-spread-across-canada-1.5286012
  8. Huffington Post –
    https://www.huffingtonpost.ca/entry/housing-forecast-canada-2021_ca_5fec942cc5b64e4421082979
  9. Canadian Real Estate Association –
    https://www.crea.ca/news/crea-updates-resale-housing-market-forecast-7/
  10. Canadian Mortgage Trends –
    https://www.canadianmortgagetrends.com/2021/01/canadas-energizer-bunny-housing-market-2021-forecasts/
Posted by Christine Pecharich
January 2021 Market Statistics

January 2021 Market Statistics

GTA REALTORS® Release January 2021 Stats

  • January 2021 home sales amounted to 6,928 – up by more than 50 per cent compared to January 2020. This strong start to 2021 included sales growth across all major segments including condominium apartments, both in the City of Toronto and surrounding GTA regions.
  • New listings were also up on a year-over-year basis in January, but not by the same annual rate as sales. This means market conditions tightened compared to January 2020, resulting in the continuation of double-digit growth in the MLS® Home Price Index and the average selling price.
  • The average selling price for January 2021 was up by 15.5 per cent to $967,885 year-over-year. The MLS® HPI Composite Benchmark was up by 11.9 per cent over the same period.
  • Price growth was driven by the low-rise market segments, while the average condo apartment price was down in Toronto. However, if we continue to see condo sales growth outstrip condo listings growth, we could start to see renewed growth in condo prices later this year.

Milton Summary:

Average Sale Price over this time last year:  + 26.4%

Number of Sales over this time last year:  +49.5 %

Oakville Summary:

Average Sale Price over this time last year:  + 26.5%

Number of Sales over this time last year:  +46.4 %

Burlington Summary:

Average Sale Price over this time last year:  + 15.3%

Number of Sales over this time last year:  +48.8 %

Halton Hills Summary:

Average Sale Price over this time last year:  + 29.2%

Number of Sales over this time last year:  – 13.8 %

Mississauga Summary:

Average Sale Price over this time last year:  + 13.8%

Number of Sales over this time last year:  +44.6 %

Guelph Summary:

Average Sale Price for January 2021   $ 707,971

Percent increase over this time last year 35.3%

Average Days on Market 10

Posted by Christine Pecharich in Blog Posts, Brampton, Burlington, Georgetown, Guelph, Halton Hills, Market Reports, Milton, Mississauga, Oakville, Toronto
December 2020 Market Statistics

December 2020 Market Statistics

GTA REALTORS® Release December Stats

Despite an unprecedented year due to COVID-19, including necessary public health restrictions and uncertainty surrounding the economy, Greater Toronto Area REALTORS® reported over 95,000 home sales in 2020 – the third-best result on record. The average selling price reached a new record of almost $930,000.

“The Greater Toronto Area housing market followed an unfamiliar path in 2020. Following the steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels throughout the summer and fall. A strong economic rebound in many sectors of the economy, ultra-low borrowing costs and the enhanced use of technology for virtual open houses and showings fuelled and sustained the housing market recovery,” said Lisa Patel, Toronto Regional Real Estate Board (TRREB) President.

Highlights from 2020 include:

  • 95,151 sales were reported through TRREB’s MLS® System – up by 8.4 per cent compared to 2019. This included a record result for the month of December, with 7,180 sales – a year-over-year increase of 64.5 per cent.
  • Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
  • The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $932,222 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA.
  • After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.

“While the housing market as a whole recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment. The supply of single-family homes remained constrained resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average condo selling prices during the last few months of the year,” said Jason Mercer, TRREB Chief Market Analyst.

Area  Average Selling Price Current Month Percent increase/decrease ytd Average DOM Current month
       
Milton  $                      860,487.00 14.9% 14
Oakville  $                   1,246,101.00 19.4% 23
Burlington  $                      899,511.00 14.2% 18
Halton Hills  $                      905,440.00 17.8% 17
Guelph  $                      638,487.00 16.0% 21
Mississauga  $                      881,769.00 16.0% 17
       

Milton Summary:

Average Sale Price over this time last year:  + 14.9%

Number of Sales over this time last year:  +9.6 %

Oakville Summary:

Average Sale Price over this time last year:  + 19.4%

Number of Sales over this time last year:  +11.5 %

Burlington Summary:

Average Sale Price over this time last year:  + 14.2%

Number of Sales over this time last year:  +18.9 %

 

Halton Hills Summary:

Average Sale Price over this time last year:  + 17.8%

Number of Sales over this time last year:  +19.7 %

Mississauga Summary:

Average Sale Price over this time last year:  + 16%

Number of Sales over this time last year:  +0 %

Posted by Christine Pecharich in Blog Posts, Burlington, Georgetown, Guelph, Halton Hills, Market Reports, Milton, Mississauga, Oakville, Toronto
November 2020 Market Statistics

November 2020 Market Statistics

GTA REALTORS® Release November Stats

The record pace of home sales in the fall continued with 8,766 sales reported in November by Greater Toronto Area REALTORS® through the Toronto Regional Real Estate Board’s (TRREB) MLS® System. This result was up by 24.3 per cent compared to November of last year.

Generally speaking, year-over-year growth in sales was stronger for single-family homes in the GTA regions surrounding the City of Toronto, but annual single-family growth rates remained robust in the ‘416’ area code as well. “Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth,” said Lisa Patel, TRREB President.

The MLS® HPI Composite Benchmark was up by 10.6 per cent in November 2020 compared to November 2019. The average selling price for all home types combined was up by 13.3 per cent to $955,615.

Market conditions tightened in many single-family market segments in November, resulting in double-digit year-over-year increases in average selling prices for detached houses, semi-detached houses and townhouses.

In contrast to the single-family market segments, buyers continued to benefit from much more choice in the condominium apartment market compared to last year, particularly in the City of Toronto. The number of new condominium apartment listings in November was almost double that reported in November of last year. More options in the condo apartment market translated into a small year-over-year decline in the average condominium apartment selling price in the ‘416’ area code.

“The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, this may be somewhat of a short-term phenomenon. Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets,” said Jason Mercer, TRREB Chief Market Analyst.

Area  Average Selling Price Current Month Percent increase/decrease ytd Average DOM Current month
       
Milton  $                      921,143.00 14.3% 12
Oakville  $                   1,276,051.00 19.1% 23
Burlington  $                      948,924.00 13.7% 19
Halton Hills  $                   1,000,255.00 17.5% 14
Guelph  $                      665,264.00 14.1% 9
Mississauga  $                      899,942.00 16.4% 12
Toronto Central  $                      796,874.00 7.9% 18

Milton Summary:

Average Sale Price over this time last year:  + 14.3%

Number of Sales over this time last year:  +7.7 %

Oakville Summary:

Average Sale Price over this time last year:  + 19.1%

Number of Sales over this time last year:  +9.9 %

Burlington Summary:

Average Sale Price over this time last year:  + 13.7%

Number of Sales over this time last year:  +17.1 %

Halton Hills Summary:

Average Sale Price over this time last year:  + 17.5%

Number of Sales over this time last year:  +18.4 %

Mississauga Summary:

Average Sale Price over this time last year:  +16.4%

Number of Sales over this time last year:  -3.2 %

Toronto Summary:

Average Sale Price over this time last year:  + 7.9%

Number of Sales over this time last year:    -9.7%

 

Guelph Summary:

Average Sale Price over this time last year:  +14.1 %

Posted by Christine Pecharich
October 2020 Market Statistics

October 2020 Market Statistics

GTA REALTORS® Release October Stats

Home sales in the Greater Toronto Area (GTA) were up again year-over-year for the fourth month in a row. Our Members made 10,563 sales as reported through the Toronto Regional Real Estate Board’s MLS® System in October 2020. This was up by 25.1 per cent 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 detached 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 per cent 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 GTA 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,” said Lisa Patel, TRREB’s President.

The MLS® HPI Composite Benchmark was up by 10.8 per cent 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 per cent 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 GTA residents. With this being said, we have not accounted for all of the pent-up demand that resulted from the spring downturn. Expect record or near-record home sales for the remainder of 2020,” said Jason Mercer, TRREB’s Chief Market Analyst.

Area  Average Selling Price Current Month Percent increase/decrease Average DOM
Milton  $                     916,717.00 13.8% 14
Oakville  $                  1,313,481.00 18.9% 21
Burlington  $                     917,013.00 13.5% 15
Halton Hills  $                     935,612.00 16.4% 14
Guelph  $                     620,000.00 15.9% 10
Mississauga  $                     878,276.00 16.5% 16
Toronto Central  $                  1,147,600.00 12.1% 18

Milton Summary:

Average Sale Price over this time last year:  + 13.8 %

Number of Sales over this time last year:  + 5.7  %

Oakville Summary:

Average Sale Price over this time last year:  + 18.9 %

Number of Sales over this time last year:  + 8.1  %

Burlington Summary:

Average Sale Price over this time last year:  + 13.5  %

Number of Sales over this time last year:  + 16.9  %

Halton Hills Summary:

Average Sale Price over this time last year:  + 16.4 %

Number of Sales over this time last year:  + 18.7  %

Mississauga Summary:

Average Sale Price over this time last year:  + 16.5 %

Number of Sales over this time last year:  – 5.7  %

Toronto (Central) Summary:

Average Sale Price over this time last year:  + 12.1 %

Number of Sales over this time last year:  – 8.6  %

Posted by Christine Pecharich in Burlington, Georgetown, Guelph, Halton Hills, Market Reports, Milton, Mississauga, Oakville, Toronto
September 2020 Market Statistics

September 2020 Market Statistics

GTA REALTORS® Release September Stats

Toronto Regional Real Estate Board President Lisa Patel announced that sales reported through

TRREB’s MLS® System by Greater Toronto Area REALTORS® amounted to 11,083 – a new record for the month of September. This result was up by 42.3 per cent compared to September 2019. Following a record third quarter, sales through the first nine months of 2020 were up by approximately one per cent compared to the same period in 2019.

“Improving economic conditions and extremely low borrowing costs sustained record-level sales in September, as we continued to account for the substantial amount of pent-up demand that resulted from the spring downturn. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence,” said Ms. Patel.

Year-over-year sales growth in September continued to be driven by ground-oriented market segments, including detached and semi-detached houses and townhouses. Annual growth rates were also higher for sales reported in the GTA regions surrounding the City of Toronto.

The September 2020 MLS® Home Price Index Composite Benchmark was up by 11.6 per cent year-over-year. The average selling price for all home types combined in September was $960,772 – up by 14 per cent year-over-year. Price growth was driven by the low-rise market segments. The relatively better supplied condominium apartment segment experienced a comparatively slower pace of price growth.

“On a GTA-wide basis, market conditions tightened in September relative to last year, with sales increasing at a faster pace than new listings. With competition between buyers increasing noticeably, double-digit year-over-year price growth was commonplace throughout the region in September, resulting in the overall average selling price reaching a new record,” said Jason Mercer, TRREB’s Chief Market Analyst.

Area  Average Selling Price Current Month  Percent increase/decrease Average DOM
Milton  $                      910,683.00 13.0% 22
Oakville  $                   1,419,482.00 18.0% 18
Burlington  $                      915,994.00 13.5% 18
Halton Hills  $                      938,970.00 15.2% 13
Guelph  $                      654,490.00 21.0% 10
Mississauga  $                      908,545.00 17.7% 16
Toronto Central  $                   1,134,524.00 12.1% 18

Milton Summary:
Average Sale Price over this time last year:  + 13%

Number of Sales over this time last year:  +1.5 %

Oakville Summary:

Average Sale Price over this time last year:  + 18%

Number of Sales over this time last year:  + 5 %

Burlington Summary:

Average Sale Price over this time last year:  + 13.5 %

Number of Sales over this time last year:  + 10.1 %

Halton Hills Summary:

Average Sale Price over this time last year:  + 15.2 %

Number of Sales over this time last year:  + 18.4  %

Mississauga Summary:

Average Sale Price over this time last year:  + 17.7 %

Number of Sales over this time last year:  – 8.1 %

Toronto Summary:

Average Sale Price over this time last year:  + 12.1%

Number of Sales over this time last year:  – 9.7 %

Posted by Christine Pecharich
August 2020 Market Statistics

August 2020 Market Statistics

GTA REALTORS® Release August Stats

Toronto Regional Real Estate Board (TRREB) President Lisa Patel announced that the strong rebound

in Greater Toronto Area (GTA) home sales continued with a record result for the month of August. GTA REALTORS® reported 10,775 residential sales through TRREB’s MLS® System in August 2020 – up by 40.3 per cent compared to August 2019.

Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding GTA regions. It should be noted that the low-rise market segments, including detached and semi-detached houses and townhouses, were the drivers of sales growth. Condominium apartment sales were up on an annual basis for the second straight month but to a lesser degree.

“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs. In addition, fewer households have chosen to go on vacation as a result of COVID-19 and instead have remained in the GTA and been active in the housing market, satisfying pent-up demand from the spring,” said Ms. Patel.

Both the number of new listings entered into TRREB’s MLS® System during the month and the number of active listings at the end of the August 2020 were up on a year-over-year basis. While new listings were up strongly for all home types, growth in new condominium apartment listings far outstripped growth in the other market segments.

“Generally speaking, market conditions remained very tight in the GTA resale market in August. Competition between buyers was especially strong for low-rise home types, leading to robust annual rates of price growth. However, with growth in condominium apartment listings well-outstripping condo sales growth, condo market conditions were comparatively more balanced, which was reflected in a slower pace of price growth in that segment,” said Jason Mercer, TRREB’s Chief Market Analyst.

The MLS® Home Price Index Composite Benchmark was up by 11.1 per cent in August 2020 compared to August 2019. Over the same period, the overall average selling price was up by 20.1 per cent to $951,404. Annual detached and semi-detached sales growth was stronger in the comparatively more-expensive City of Toronto compared to the surrounding GTA regions, which helps explain why growth in the overall average selling price outstripped growth in the MLS® HPI Composite Benchmark.

Milton Summary:

Average Sale Price over this time last year:  + 11.2 %

Number of Sales over this time last year:  – 5.3 %

Oakville Summary:

Average Sale Price over this time last year:  + 15.7%

Number of Sales over this time last year:  – 2.7 %

Burlington Summary:

Average Sale Price over this time last year:  + 13.4%

Number of Sales over this time last year:  +2.7 %

Halton Hills Summary:

Average Sale Price over this time last year:  + 15.2%

Number of Sales over this time last year:  +12.1 %

Mississauga Summary:

Average Sale Price over this time last year:  + 17.3%

Number of Sales over this time last year:  – 13.8%

Brampton Summary:

Average Sale Price over this time last year:  + 14.2%

Number of Sales over this time last year:  – 3.4%

Toronto Summary:

Average Sale Price over this time last year:  + 12.3%

Number of Sales over this time last year:  – 12.6 %

Posted by Christine Pecharich
July 2020 Market Statistics

July 2020 Market Statistics

GTA REALTORS® Release July 2020 Stats

Toronto Regional Real Estate Board President Lisa Patel announces that Greater Toronto Area REALTORS® reported 11,081 sales through TRREB’s MLS® System in July 2020 – a 29.5 per cent increase over July 2019 and a new record for the month of July. On a preliminary seasonally adjusted basis, sales were up by 49.5 per cent compared to June 2020.

Year-over-year sales growth was driven by low-rise home types, particularly in the regions surrounding the City of Toronto. However, condominium apartment sales were also up on an annual basis, including in Toronto. Total new listings were also up strongly on a year-over-year basis by 24.7 per cent, but this annual growth rate was less than that of sales, which means market conditions tightened on average compared to July 2019. In addition, active listings at the end of July were down by 16.3 per cent.

“Sales activity was extremely strong for the first full month of summer. Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with pent-up demand from the COVID-19-related lull in April and May being satisfied in the summer, as economic recovery takes firmer hold, including the Stage 3 re-opening. In addition, fewer people are travelling, which has likely translated into more transactions and listings,” said Ms. Patel.

The July 2020 MLS® Home Price Index (HPI) Composite Benchmark was up by 10 per cent compared to July 2019. The overall average selling price was up by 16.9 per cent year-over-year to $943,710. On a preliminary seasonally adjusted basis, the average selling price was up by 5.5 per cent compared to June 2020.

Price growth was strongest for low-rise home types, notably within the City of Toronto. Despite more balanced market conditions in the condominium apartment market segment, year-over-year price growth remained in the high single digits.

“Competition between buyers continued to increase in many segments of the GTA ownership housing market in July, which fuelled a further acceleration in year-over-year price growth in July compared to June. On top of this, we also experienced stronger sales growth in the more-expensive detached market segment, which helps explain why annual growth in the overall average selling price was stronger than growth for the MLS® HPI Composite benchmark,” said Jason Mercer, TRREB’s Chief Market Analyst.

 

Milton Summary:

Average Sale Price over this time last year:  + 9.9%

Number of Sales over this time last year:  – 11.3 %

Oakville Summary:

Average Sale Price over this time last year:  + 13.9%

Number of Sales over this time last year:  – 11.2 %

Burlington Summary:

Average Sale Price over this time last year:  + 13.5%

Number of Sales over this time last year:  – 2.9%

Halton Hills Summary:

Average Sale Price over this time last year:  + 13.5%

Number of Sales over this time last year:  +5.2 %

Mississauga Summary:

Average Sale Price over this time last year:  + 14%

Number of Sales over this time last year:  – 37.7%

Brampton Summary:

Average Sale Price over this time last year:  + 13.5%

Number of Sales over this time last year:  – 10.6%

Toronto Central Summary:

Average Sale Price over this time last year:  + 10.1%

Number of Sales over this time last year:  – 17.1 %

City of GUELPH on
Single Family Average Sale Price $ 721,325 up by 15.2%
Number of Sales 135 up by 4.7%

Posted by Christine Pecharich
Mississauga April 2020 Market Statistics

Mississauga April 2020 Market Statistics

GTA REALTORS® Release April 2020 Stats

Toronto Regional Real Estate Board President Michael Collins released the following key housing market statistics for April 2020:

Home Sales and Listings

  • Greater Toronto Area REALTORS® reported 2,975 residential transactions through TRREB’s MLS® This result was down by 67 per cent compared to April 2019. Weekday sales remained within a relatively steady range during the month, averaging 130 per day.
  • New listings amounted to 6,174 in April 2020 – down on a year-over-year basis by a similar rate compared to sales (-64.1 per cent).

Home Prices

  • The average selling price for April 2020 transactions was $821,392 – up by 0.1 per cent compared to the average price of $820,373 reported for April 2019. The semi-detached and townhouse market segments experienced annual average price growth above the rate of inflation. The condominium apartment and detached segments experienced year-over-year price declines on average.
  • The trend for the MLS® Home Price Index Composite Benchmark, which had been on an upward trajectory since the beginning of 2019 flattened in April. On a year-over-year basis, the Benchmark was up by 10 per cent.
  • The MLS® HPI indices represent prices for typical homes with consistent attributes from one period to the next. The fact that the MLS® HPI was up year-over-year by a greater rate than the average selling price suggests that the share of higher end deals completed in April 2020 versus April 2019 was down

Posted by Christine Pecharich in Market Reports, Mississauga