Toronto 11 August 2020. July just became the new May. At the beginning of this year, almost historic lows in inventory were already pushing us along a record trashing trajectory. Then along came COVID and we were almost frozen waiting and watching what to do next. The usual spring Market of April and May saw volumes decline upwards of 60%. June arrived with record-breaking numbers and those apparently stuck in a malaise seemed to suddenly get active. Essentially April and May got pushed into June and July. In the vernacular of the press, the "Spring market delayed by COVID became the "Summer" market.

The July Toronto Real Estate Numbers have broken all the records. The average selling price for July was $943,710, up by +16.9% year-over-year. That’s just $52,000 under a Million bucks. It's hard to believe that in 1998, 80% of all homes sold in the GTA were under $250,000.

There were 11,081 sales in July 2020 representing +29.5 per cent increase over July 2019 and a new record for the month of July. Sales seasonally adjusted were up by +49.5 per cent compared to June 2020.  Although Inventory was actually up +24.7% versus the previous year, the sales explosion outpaced the listings, resulting in tight market conditions compared to July 2019. In addition, active listings at the end of July were down by -16.3 per cent. Ultimately July saw Inventory drop to about 5 weeks. A decidedly seller's market, in almost all types of homes. The caution always being that not all neighbourhoods and communities are the same. 

So far, the first week of August has shown a slight decline in this frenzied pace. It could, however, have been the effect of hot weather, a long weekend and folks just trying as much as they can under social distancing to get away from it all and take a “staycation”

Recent surveys have suggested that throughout June and July it has been low-interest rates and shifting preferences that have motivated home purchasing.  Approximately 30% of the home-buying population surveyed reported that their current home was unsuitable. If you are now "permanently" going to work from home, you may require that extra space, for a dedicated work area. Additionally, if you are spending more leisure time at home you may just want to upgrade. The pandemic has witnessed a very resilient real estate market both in Canada and the US.  
Going forward serious questions remain regarding the actual state of the economy. Although unemployment has improved, serious damage to large segments of the economy has been artificially buoyed by Government programmes. Also, what will happen to the 800,000 Canadians who have deferred their mortgage payments, when the typical 6 month period is over in and around November.
Planning your real estate move should commence now before it is too late, regardless if you're buying or selling.
You can commence a free no-obligation conversation here.