Despite being in the midst of a global pandemic, Toronto home sales rebounded in June with the average selling price of a home hitting a new all-time high, according to a new report from the Toronto Regional Real Estate Board (TRREB).
According to their latest findings, TRREB reported 8,701 sales in June, representing a substantial increase from May, both on an actual (+89%) and seasonally adjusted basis (+84%), and was down by just 1.4% when compared to June 2019.
TRREB also noted there was sizeable y-o-y growth in sales in the detached and townhouse market segments in the GTA regions surrounding Toronto, with 4,445 and 1,573 properties trading hands respectively.
The MLS Home Price Index Composite Benchmark also showed some growth last month and was up by 8.2% y-0-y, while the average selling price for all home types combined was $930,869 – up by 11.9% compared to June 2019, and higher than the previous record of $920,791 set in April 2017. Both the actual and seasonally-adjusted average selling price was also up substantially compared to May, by 7.8% and 9.8% respectively.
Prices rose across all property types last month, particularly in the semi-detached homes segment, which saw a 22% surge in prices in Toronto, where the average price reached almost $1.3 million.
TRREB president Lisa Patel noted June experienced very positive results in terms of home sales and selling prices, following a great deal of pent-up market demand in the months before COVID.
“This pent-up demand arguably increased further over the past three months. We are still in the early days of recovery, but barring any setbacks, we should continue to see stronger market conditions in the second half of 2020 as households look to satisfy their ownership housing needs,” said Patel.
Meanwhile, the number of homes on the market rose almost 33% from May to 14,001 active listings; however, that level of inventory was almost 29% below year-ago levels.
“It will be important to closely monitor housing market conditions as economic recovery continues in the second half of 2020 and into 2021,” said TRREB CEO John DiMichele.
“Policy makers should proceed cautiously with any demand-side stimulus. The persistent lack of listing inventory in the GTA understandably took a back seat to COVID- related issues in the short term, but supply should once again be top-of-mind once the recovery takes hold, in order to ensure long-term affordability in the GTA,” said DiMichele.