This home sales analysis looks at the monthly figures for August 2020, released by TRREB, the Toronto Regional Real Estate Board. In short, August showed another steep upward trend in both home sales and prices.
This post was first published on Sep 4, 2020. The figures below are from August 2020.
August 2020 home sales analysis: sales volume
Let us start with the number of sales. August sales went up a whopping 40.3% compared with the same month a year ago, in August 2019.
Sales also went further up by 10.5% from the previous month, July 2020. And July had already seen a surge in home sales of 29.5% compared with June 2020.
So the market was not just recovering. Instead, it was building speed month after month. For anyone reading these reports, this is the key point. One strong month can be a blip, but three strong months in a row point to a real trend.
Average selling prices in August 2020
Prices told a similar story. The month’s year-over-year increase in the average sales price beat the previous month’s. In July, the increase was 17%. In August, it climbed to over 20%.
A rising average price can have several causes. For example, more detached homes may sell in a given month, which lifts the average. Still, when sales and prices rise together, it usually means demand is strong. That is why I read this home sales analysis as a sign of real buyer demand, not just a change in the mix of homes sold.
New listings in the home sales analysis
It seemed that both buyers and sellers had more confidence than in the early days of the COVID-19 pandemic in March 2020. In fact, almost 57% more new listings came onto the market compared with the same month last year.
With this confidence, both buyers and sellers rushed into the market. As a result, they began to fill the gap left by the slow early days of COVID-19.
More listings usually give buyers more choice. However, in August 2020, buyers absorbed the new supply quickly. So even with more homes for sale, competition stayed strong.
For sellers, this part of the home sales analysis carried a clear message. A well-priced home could attract several buyers at once. For buyers, it meant that being ready mattered. A mortgage pre-approval, a clear budget and quick decisions often made the difference between winning and losing a home.
Multiple offers and selling over asking
Multiple offers and selling over the asking price almost became the norm in many areas in the GTA and around it.
Here is a quote from a previous blog of mine that still held true at that moment:
Contrary to the general impression that due to COVID-19 the home sales would be down and eventually the prices would see some pruning during this period, what we are seeing is multiple offers and properties selling over asking prices, and the trend is continuing upward without looking back.
This home sales analysis confirmed that view. Although many people expected a slump, the numbers showed the opposite.
Bidding wars can be stressful for buyers. So it helps to set your top price before you see the other offers. Also, keep your conditions simple but sensible, and never skip the checks that protect you. Sellers, on the other hand, should still price with care. A fair list price tends to draw more interest than an inflated one.
How to read a monthly home sales analysis
A monthly home sales analysis is useful, but it is easy to misread. So here are a few simple habits I recommend to buyers and sellers.
- First, compare year over year. It removes most of the seasonal ups and downs.
- Next, look at sales and new listings together. Their balance tells you who has the upper hand.
- Then check your own area. Mississauga, Oakville and Toronto can move at different speeds.
- Finally, think about your own timing, not just the headlines.
For the months around this one, see my reports on home sales in June 2020 and home sales in July 2020. The market has changed a great deal since then. For a recent view, read my latest price update. You can also find the official monthly reports on the TRREB website.
Talk to a Mississauga real estate agent
Do you have questions about what the numbers mean for your own 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.
