Housing Market Roars Back

Prices soar 16.9 percent

Housing Market Roars Back

The GTA housing market roared back to bustling activity for the second straight month, despite the ongoing pandemic. Sales in the GTA jumped 29.5 percent on a year-over-year basis, a new record for the month of July. The average price soared by 16.9 per cent to $943,710 in comparison to the same period last year.

July sales in the GTA were also 49.5 per cent higher than in June, the month that already recorded a sharp rebound in activity after two months of COVID-19 restrictions. According to Jason Mercer, chief market analyst for the Toronto Regional Real Estate board, this strong rebound is driven by consumer confidence in the economy. He explains, “What we’re seeing through June and July are a lot of home buyers coming back into the marketplace.”

In the City of Toronto, the average price for a detached home soared 25.5 per cent to $1,541,003, and in the surrounding suburbs, the average price shot up 14 per cent, to $1,060,318. The leap in average home price in comparison to July 2019 was seen across all home types in the GTA. Semi-detached bumped up 20 per cent to $1,181,014; townhouses rose 12.7 percent to $852,284; and condo apartments increased by 8.8 per cent to $682,999 in the City of Toronto. In the 905 areas, semis went for $773,513 (+11.2 per cent); townhouses for $701,853 (+11.1 per cent); and condos for $527,117 (+10.6 per cent).

The housing market buoyancy in the GTA and the surrounding area surprised some. Vik Singh, Assistant professor at Ted Rogers School of Management, specializing in the impact of Covid-19 on the economy, is one of them: “I was surprised at how the housing market responded to the pandemic. In March and April, I was very pessimistic and thought the market would correct. But, surprisingly, it’s been resilient. I think Covid-19 created a lot of confusion in people’s minds. They thought it was going to cause a huge economic catastrophe and a lot of people were going to lose jobs . People did lose jobs, but mainly, those were in lower income positions. The fallout has not really impacted the high-skill labour sectors, like finance and technology. Thus, the market has been able to stave off a potential sell-off and homeowners have been able to hold on to their real estate assets.”