The TRREB home sales report for June 2020 surprised many people. During the COVID-19 pandemic, a lot of people were skeptical about home prices. Yet the average home selling price that month rose almost 12%.
This post was first published on July 9, 2020. The figures below are from June 2020.
Why many expected a crash in June 2020
In the spring of 2020, fear was everywhere. Businesses closed, many people worked from home, and the news was full of uncertainty. So it was natural for buyers and sellers to worry about the housing market.
Some self-described experts painted a gloomy picture of the market. However, I had been saying consistently that the market would not crash. Instead, I believed it would be back on wheels sooner rather than later.
The numbers for that month showed which view was closer to the truth. As a result, many people who had waited on the sidelines began to look at the market again.
Fear is a normal reaction to big news. However, housing markets rest on basic forces such as jobs, interest rates, and the number of homes for sale. When those forces stay steady, prices tend to hold up better than people expect.
June 2020 prices rose almost 12%
With the latest numbers out from the Toronto Regional Real Estate Board, the average home selling price last month, June 2020, rose almost 12%.
That is a strong gain in any year. In the middle of a pandemic, it was even more striking. It showed that demand for homes in the GTA was still strong, even when daily life had changed so much.
For sellers, this was reassuring news. For buyers, it was a signal that waiting for a big price drop might not pay off. In both cases, the lesson was the same. Decisions should rest on real data, not on fear.
Home sales in June 2020
The sales numbers told a similar story. Seasonally adjusted home sales in June 2020, compared with June 2019, were down by a meagre 1.4%, considering the effects of COVID-19. At the same time, sales went up by a staggering 84%.
A drop of only 1.4% from a normal, pre-pandemic year was a sign of strength. Meanwhile, the 84% jump showed how fast activity was coming back. Buyers who had paused in the spring were now returning with confidence.
Analyzing the TRREB report, I saw an upward trend for the coming months. In fact, my later reports on home sales in July and home sales in August show how that trend played out.
Low rates and federal support
Two things helped the market in June 2020. First, interest rates from the Bank of Canada were historically low. Lower rates make mortgages more affordable, so more buyers can qualify and act.
Second, the federal government’s generous COVID-19 package helped individuals and businesses cope with challenging times. That support added to the public’s confidence in getting into the real estate market. If you want to know how people applied, read my post on the federal relief package.
Lessons from June 2020 for buyers and sellers
Markets change, and rates have moved a great deal since June 2020. Still, a few lessons from that month hold true.
It also helps to remember that every neighbourhood moves at its own pace. A strong GTA average can hide a slower street or a hotter one. So when you plan a move in Mississauga, Oakville or Toronto, ask for recent sales close to your home. A local view gives you a much clearer picture than a regional headline.
- First, headlines are not the same as data. Always check the actual numbers.
- Next, look at both prices and sales. Together, they show the real strength of the market.
- Then think about your own timing. Your needs, budget and plans matter more than any one month.
You can read the full TRREB report for that month here: TRREB Market Watch, June 2020. Newer reports are on the TRREB website.
Talk to a Mississauga real estate agent
Do you have questions about the market or about buying or selling your home? Please send me a message or call me directly at 416 908 5600. I am A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage, and I am always glad to help. If this post was useful, you can also leave a Google review.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
