Monthly Market Update with Miia Kelly – October 2020

October 13, 2020

After unusual Spring and Summer seasons, how did the market do in September? How was the condo apartment segment different from the rest? What’s the latest on pandemic restrictions in real estate? Find out in this month’s video.

Hi, it’s Miia here with your monthly market update.

Strong Sales and Prices

Well, we had a strong September when it came to the number of sales of homes in the GTA, with a record number of sales. Compared to a year ago, the number of sales were up by 42.3% and the average home price was up by 14.0%.

In a normal year, we have a strong Spring with a couple of slow months in the summer, and then the market picks back up again in the Fall. This year, the market had stalled in March and April which would have been the Spring season, and then when the market got back into gear, we stayed busy through the summer and went right into the Fall season without a break.

Low-Rise Homes Compared to Condo Apartments

The increase in the average home price was more pronounced in the low-rise segments of home types than in condo apartments, which reflects a shortage of listings for these types of homes, in order to meet the demand. Compared to a year ago, detached homes were up by 12.9%, semi’s were up by 10.6%, townhouses were up by 10.5% and condo apartments were up by 6.6%.

Speaking of condo apartments, I did a video a few weeks ago about how the pandemic has directly and indirectly doubled the number of listings of condo apartments, which has created a buyer’s market in the condo apartment segment, unlike the strong seller’s market that we have seen in the low-rise segments. Interestingly, the NUMBER of SALES of condo apartments was UP by 14.6% in September 2020 vs September 2019. The difference in the market this year is that there are more OPTIONS from which the buyers can choose.

Pandemic Update

Last week, the Ontario Real Estate Association and the Toronto Regional Real Estate Board called upon all of its members, us REALTORS®, to avoid in-person open houses during this second wave of the pandemic and to continue to take advantage of virtual tools.

Legally speaking, an open house is still allowed, but in Toronto and Peel Region, a maximum of 10 people at a time would be allowed and only if physical distancing can be maintained. Since it is tricky for a government to make outright legal bans, open houses have not yet been banned again, but the legal ability to hold an open house does not mean that doing so would be in the best interest of the seller or the public, and the practice of holding open houses at this time is strongly discouraged.

That’s my update for this month. If you have any questions, let me know.

Bye for now.