Welcome to my Toronto Real Estate Market Update For November 2020.
You’ve heard me talk repeatedly about the ambiguity of Toronto real estate news headlines when they say the market is hot, or is on fire.
Is that in reference to prices of Toronto Real Estate or volume of transactions?
And remember that when you see news & statistics every month they are for the month prior – not necessarily current.
So let’s talk about the average prices of Toronto real estate in October 2020 first.
Then we will talk about volume of sales/transactions.
The average price in Toronto increased again from $960k in September 2020 to $968k in October 2020.
So that’s a 0.8% increase in value. And that might seem like a small amount as it’s just less than 1%.
But when you think about it, if your home goes up 1% a month that’s 12% a year. Not bad for any investment.
In fact, since some months are more and some less, we are actually up 13.7% from October last year to this year.
We were up 14% if from September last year to this year. So still holding pretty close.
Now let’s talk about the average # sales (or volume of transactions) of real estate in Toronto.
The number of sales was actually down from September to October by 4.7%.
Although October was competing with September 2020 which happened to be the highest sales in a single month since April 2017
That’s a 41 month time frame folks.
There were 11,083 sales in September 2020 and 10,563 in October 2020.
So aside from the unusual September we had which might have been a result of the pandemic, the results in October 2020, although down from September, were in fact up 25.1% (you heard me correctly) from October last year.
October 2019 saw 8,445 sales and October 2020 saw 10,563 sales.
Now let’s talk about the number of listing on market (sellers/inventory).
So the number of new listings with properties on the market in Toronto was down from 20,420 in September 2020 to 17,802 in October which is almost a 13% decrease.
So to sum this all up I’m so happy when the numbers support all of the prior videos and blog posts I’ve done about understanding the market.
The bottom line is this. All through October people kept saying to me “I hear the market is hot or on fire”.
I’d respond with: “Yes, the prices are increasing. And remember those are last months statistics”
But when I’m dealing with my current client listings I have to remind them that we must price & sell your property as of today’s market.
And therefore I’d also be responding to those people (who approached me in October) telling them that as an active Realtor I’m currently seeing the number of transactions and number of listings start to slow down.
And now that numbers are in for October I’ve been able to quantify for you here today exactly what happened in October.
In short, the number of transactions was down a bit, the number of new listings (inventory) was down a bit, but since Buyer interest stayed/stays strong, when there are more Buyers than there are Sellers, or as I’ve said many times demand exceeds supply, the prices stay strong.
In fact they not only hold their own but they continue to rise.
As a last FYI I remind you that everything I just talked about is more or less about the housing market & not the Toronto Condo Market.
And that’s your Toronto Real Estate Market Update For November 2020. Actually in November for October 2020.
If you have questions about the Toronto real estate market or pricing in your area specifically please don’t hesitate to ask me and I’d be happy to discuss with you.