As a second Covid-19 wave envelopes Canada, it appears that the country’s biggest housing market saw yet another month of strong growth, with sales activity up by 24.3% compared to November 2019 levels. Despite the strong momentum though, there still continues to be an elevated weakness in the market’s once-popular condo segment.
According to latest data published by the Toronto Regional Real Estate Board (TRREB), there were a total of 8,766 property sales in the Greater Toronto Area in November, which amounts to a 24.3% increase from year-ago levels, but a drop of 17% relative to October sales activity. Likewise, the average home price across the GTA region rose to $955,615, and although it registers as a growth of 13.3% on a year-over-year basis, the November average price is still a decline from October’s record-setting average price of $968,318.
Indeed, much of the growth in sales activity was fuelled by the detached homes category, especially those located outside of Toronto. Sales in this segment (which also includes the cities of Mississauga and Brampton) soared by 33.6% compared to November 2019. The sudden surge in demand for single-family detached homes certainly attests to the growing momentum of migrations into suburban and rural areas amid a changing landscape as a result of the pandemic.
Similar to the phenomenon that is being observed south of the border, a number of cities are beginning to witness their once-popular downtown cores becoming increasingly desolate. Not only are people looking to escape the soaring virus infection rates that coincide with living in heavily congested metro areas, but as remote work options become synonymous with at-home gyms and at-home schooling, an increasing number of people are seeking out more room for such activities.
Correspondingly, the city of Toronto condo market saw sales only rise by a mere 0.8% relative to last year’s levels, while the average selling price dropped by 3% to $640,208. Indeed, buyers that were looking to purchase a condo during the month of November certainly had a wide selection to chose from, given that active listings soared from 1,707 in November 2019 to a total of 5,018 active listings currently.
Information for this briefing was found via the 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.