July 2020 Sales Numbers Are In...And They Are Ridiculous!
The Toronto Real Estate Board (TRREB) recently released their sales stats and data for the month of July and it pretty much blew last year’s July numbers completely out of the water!
I can honestly say I was a little bit surprised even though I rarely get surprised by anything that happens in the Toronto housing market (after ten years in this business) but it just goes to show you the resiliency of the Toronto RE market, the strength of demand from buyers and the low inventory of homes for sale particularly inside Metro Toronto boundaries. Sizzling Boiling Hot!
With sales up a staggering 29.5% compared to last year in the same month and with super low interest rates, whenever there is fear and uncertainty in the world (particularly massive calamities like the US housing collapse in 2008 and now the coronavirus in 2020), it seems like people are seeking comfort and safety of their families and their finances in Toronto property.
It makes sense right?
Think about how important the home is now in peoples’ lives where it is central not only to their personal lives and comfort but also their professional lives too!
It’s no mystery and no surprise to me that the market is doing so well right now towards the end of summer in 2020 during a pandemic. I am not surprised in the least because the pent-up demand from the spring has forced people to delay their purchasing plans for 1-2 months and now we’re seeing the brunt of that force in both the months of June and July of this year.
The TRREB did an excellent job in their last report noting that:
Buyers still very much want to live inside the city (and they’re willing to pay a pretty penny for it)
We are not seeing a mass exodus into the suburbs although country and cottage properties have been doing exceptionally well
The slower summer months typically (the vacation months) have turned into home purchasing months in 2020 due to the unique situation we are in
And if this continued pressure on homebuying continues inside of Toronto, there is chance that not only might we catch up to 2019 overall sales figures but we might even surpass it if we continue along this path for the next 2-3 months. And if we continue to see extreme low interest rates as we have been seeing, lower inventory unable to keep up with demand, there is a high probability that we might hit $1 million average selling price in Toronto and be prepared for a push out into the suburbs due more in part to pricing and competition than it is really about the virus. Stay tuned for that!
Check out my latest video on the topic