With the broader movement and gradual reopening of the economy, June experienced positive results in terms of home sales and selling prices. A substantial increase was seen over the May 2020 sales results and was only down by 1.4% compared to June 2019. Notable were the detached and townhouse market segments in the GTA regions where year-over-year growth in sales were was reported in some areas and market segments. The average and benchmark selling prices were up year-over year for all major home types with the average selling price for all home types combined was $930,869 – up by 11.9% compared to June 2019.
Prior to the onset of COVID-19, there was a great deal of pent-up demand in the market, which appears to have arguably increased further over the past three months. It is still fairly early days of recovery, but barring any setbacks, stronger market conditions should continue into the second half of 2020.
New listings were up slightly on a year-over-year basis, up 2.1%. However, the number of active listings at the end of June 2020 was down by 28.8% compared to this time last year. Hence, it will be important to closely monitor housing market conditions as economic recover continues in the second half of 2020 and into 2021.
It is very important to note that many of the guidance and predictions noted is predicated on the continued reopening of the economy, gradually improving labour market in the GTA and sustained low borrowing costs. Risks still remain within housing market that could have potential negative impacts. These include:
A resurgence in COVID-19 cases, which could prompt a pause or even dialing back of the reopening in the GTA, and the economic impacts
A negative economic impact associated with the resurgence of COVID-19 cases in the United States, which could continue to impact trade, employment and overall household wealth via equity markets
As always, as licensed real estate agents, we are here to help provide advice and guidance. It is extremely important to get a market evaluation for your neighbourhood to obtain an accurate evaluation for your property when considering to list your home. Similarly, if in the market to purchase a home, a real estate agent can maintain a pulse on the market values in the neighbourhood being looked into. By doing so, it will increase the likelihood of attractive offers being considered by sellers.
At Search Realty Corp., Brokerage, we continue with our implemented Sell Safe and Buy Safe Action-Plans and use of digital technologies to perform contactless transactions.
Please feel free to reach out to use at any time. We are more than happy to help or answer any questions you may have.
It’s our family helping yours!
Kristina & Rey