According to the Toronto Regional Real Estate Board, sales in the GTA soared over 40% in August. Average prices went up to $951K, a 20% increase from August 2019.
Listings also rose, by over 57% compared to August 2019. The surge in August’s listings is more proof of the unfolding trend Tembo has followed – that of people moving away from cities and downtown condos, to the tranquility, privacy, and space of the rural, suburban, and exurban regions. Realtors across the GTA are advising clients interested in selling to list quickly as demand is strong, supply is limited, and prices are in good shape. Note is being made of the ongoing shift to the countryside, with those with means keeping condos as a ‘foothold’ in the cities.
Realtors believe that the U.S. Presidential election could inject a significant degree of political and social uncertainty that would have ripple effects on GTA real estate, but few expect any of the two outcomes to seriously affect the market. The consensus seems to be the Spring of 2021 as a point of uncertainty – from deferred mortgage payments, ongoing economic aftershocks, the outcome of a vaccine for COVID-19, and the threats of a second wave. With the BOC (Bank of Canada) again maintaining steady interest rates, monetary policy and fiscal policy are being put into maximum effect to maintain strong real estate demand and prices.
The new hot spots for freehold, or large property homes, are Collingwood and the Niagara region. Realtors are noting the continued ‘aggressive’ moves to these areas. The big word in the market is uncertainty, but positive numbers show an underlying health and ample buying power. Another piece of positive news, uncertainty aside, is that housing starts surged in August, to over 260,000 new units nationally – this is the strongest showing since 2007. Developers are working in overdrive despite COVID-19 to build the homes that Canadians need.