As some economic conditions continue to improve across Canada, some markets have seen a substantial boost since the coronavirus-induced downfall in the spring. According to data released by the Toronto Regional Real Estate Board (TRREB), home prices in the Greater Toronto Area (GTA) have reached a new record, rising by 20.1% in August.
Homes in the GTA have been selling for an average price of $951,404 during the month of August, smashing through the prior record of $943,710 set in July. In the meantime, house sales increased by 40.3% on a year-over-year basis, totalling to 10,775 units sold. Although the latest numbers have significantly increased since the economic slump back in March and April, they still remain 300 units below July’s levels.
The sudden increase in demand for home ownership has been a strong contributing factor in the improvement of economic conditions such as GDP growth and job market activity. In addition, record-low interest rates have been attracting many first-time home buyers to the market, while travel restrictions have forced many families to refrain from summer vacations, instead keeping them engaged in the city’s real estate market.
Information for this briefing was found via TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.