The TRREB home sales figures for July 2020 are out. The report from the Toronto Regional Real Estate Board shows a continuing upward trend in both sales and the average selling price.
This post was first published on Aug 7, 2020. The figures below are from July 2020.
July 2020 sales: a whopping jump
Sales went up a whopping 49.5% compared with the previous month of June. At the same time, sales went up by 29.5% compared with the same month last year.
Those are big numbers, especially in the middle of a pandemic. So what do they mean? Put simply, buyers who had paused in the spring came back with force. In addition, low interest rates made it easier for many families to act.
For sellers, strong sales in July 2020 meant a large pool of active buyers. For buyers, it meant more competition for each good home.
It also helps to know the difference between the two comparisons. A month-over-month change shows short-term speed. A year-over-year change removes most seasonal effects, so it shows the bigger trend. When both point up, as they did here, the signal is much stronger.
Average selling price in July 2020
Prices moved up as well. The average sales price recorded a distinct 17% increase compared with July last year. It also went up by 5.5% compared with the previous month.
A monthly rise of that size is worth noting. Usually, prices move slowly from one month to the next. Therefore, a jump like this showed how quickly demand was building in July 2020.
New listings and the supply gap
New listings for sale were up by almost 25% compared with July last year. However, as I noted at the time, the sales of properties were up too, by 3%. This created a bigger gap between the homes available for sale and the buyers in the market.
That gap further supported the upward trend in home prices. In other words, when buyers outnumber homes, prices tend to rise. This simple balance explains much of what we saw in July 2020.
Here is a practical tip. Always read listings and sales together, never alone. More listings sound like good news for buyers. Yet if sales rise just as fast, the market stays tight. Similarly, fewer listings do not always help sellers if buyers are also stepping back.
Homes sold faster in July 2020
Since there was a smaller supply of houses on the market, properties sold faster. On average, homes stayed on the market over 24% fewer days compared with July last year.
Days on market were squeezed even further when compared with the previous month of June 2020. For buyers, this meant less time to think. For example, many buyers had to book showings quickly and make decisions within days.
Condos versus low-rise homes
Overall, condo prices and sales also went up. But the major push came from the non-high-rise market, such as detached, semi-detached and townhouses.
Many families wanted more space during the pandemic. Home offices, backyards and extra bedrooms became more important. As a result, low-rise homes led the gains in July 2020, while condos followed at a slower pace.
What the July 2020 numbers taught buyers and sellers
At the time, I wrote this about the market:
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.
The lesson from July 2020 still applies. Headlines can create fear, but the data tells the real story. So before you buy or sell, look at the actual numbers for your area. Then make a plan that fits your own needs and timing.
For the months on either side, read my June 2020 sales report and my August 2020 sales analysis. You can also find the official monthly reports on the TRREB website.
Talk to a Mississauga real estate agent
Do you have questions about the market or about your own plans? 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.
