The resilience of the Toronto real estate market is something to behold. In “normal” times, one might take for granted that houses sell, prices rise, and investments remain secure. In times of uncertainty, however, it is remarkable to note that Toronto real estate continues to be as reliable as a Swiss watch.
A look at week-to-week activity revealed a dramatic uptick throughout the month of May. In fact, comparing the week ending May 31st to the week ending May 3rd, Property Showings in the GTA are up 95%, Offer Registrations are up 94%, New Exclusive Listings are up 70%, and Sold Transactions are up 95% (as per Broker Bay).
The Toronto Regional Real Estate Board (TRREB) figures for the month of May tell a similar story. Though the 4,606 sales reported through MLS represent a 53.7% decline from a year earlier, the reduced activity was much less dramatic than the year-over-year decline we reported in April. And, when comparing month-over-month activity, sales were up 55.2% in May.
Despite the current economic uncertainty, housing prices in the GTA continue to hold. At $863,599, the average sales price was up 3% from the same period last year and up 5.1% from April. The MLS Home Price Index Composite Benchmark, which is a more accurate indicator of inflation in the market, was up 9.4% year-over-year and unchanged from last month.
Condos ($625,445) showed the biggest gains at 6% year-over-year. The average sales price for semis ($867,717) and towns ($686,854) were up 4.8% and 3.1% respectively. The average price for single detached homes ($1,033,341) was down 0.9%, but the average price for singles in the 416 (+2.7%) and 905 (+1.8%) both increased. The number of homes sold in Toronto was lower by a greater annual rate (-63.1%), which reduced the average price for the category.
As the economy begins its recovery, and as realtors and members of the public become more accustomed to virtual showings, offers, and other digital communications, expect to see upward trends as Toronto, once again, proves itself to be a model of resiliency.
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