Summary

• The average sold price of detached homes in the Greater Toronto Area (GTA) increased by 9.1% in June from May, rising 5.6% year-over-year (YoY) 
• Sales of detached homes increased 5% YoY and 95% in June from May
• Increases in the number of new listings and detached home sales, as well as rises in sold price, suggest buyers and sellers are returning to the market
• The average sold price of apartments has increased 7% YoY and 1% in June from May
• Sales of apartments declined 17% YoY but increased 79% in June from May
• From May to June, the number of sales and new listings for apartments have all risen; however, average sold prices fluctuated on a YoY basis

June 2020 brought with it a swath of positive indicators with respect to the Greater Toronto real estate market compared to both May 2020 and June 2019, especially for detached homes. Although effects of the Covid-19 pandemic persist, sales, listings, and price data all indicate that Greater Toronto’s real estate market is rebounding and attracting more buyers. Despite a gradual easing of Covid-related social and commercial restrictions, market indicators pertaining to apartments in the GTA are mixed, however. 

In the most recent monthly report from the Toronto Regional Real Estate Board (TRREB), Lisa Patel, President of TRREB, stated that a huge increase in sales occured in June, rising 89% from May. Moreover, June 2020 sales were only 1.4% lower than June 2019. ROOMVU endeavoured to carefully analyze data published by TRREB to evaluate market trends in detached homes and apartments in different cities across the Greater Toronto Area.

Figure 1 compares the number of sold properties across the GTA. In detached homes, June 2020 outperformed the market on a month-to-month and year-over-year basis. With respect to apartment sales, June 2020 sales fell short of 2019 levels, although it featured a dramatic increase from May 2020. 

Figure 1. Total Number of Detached Homes and Apartments Sales in Greater Toronto

Figure 2 illustrates year-over-year and month-over-month changes in the number of sold properties (both detached homes and apartments). The upward trend of the real estate market in June 2020 is substantial when compared to the previous month.

Figure 2. Year-over-Year (June 2020 vs. 2019) & Month-over-Month (June 2020 vs. May 2020) Changes in Total Number of Sold Detached Homes and Apartments in Greater Toronto

The performance of detached homes and apartments in different cities across Greater Toronto was analyzed separately below. 

Detached Homes

The market for detached homes in Greater Toronto showed clear signs of recovery in June 2020 compared to pre- and post-Covid levels. According to the June report published by TRREB, sales of detached homes in June 2020 increased at a rate of 5.6% year-over-year. Comparatively, sales of detached homes in May 2020 were down 50.6% over the previous year. The average sold price of detached homes rose 10.8% YoY, whereas there was a 0.9% drop in May 2020 YoY. 

Even with the prevailing pandemic reality, the average sold price of detached homes experienced a gain of 9.1% from May 2020 to June 2020 in Greater Toronto, a further indication of the strengthening market. 

Figure 3 shows the average price of detached homes in nine Greater Toronto cities in June 2020 and 2019. In all selected cities, average prices have increased almost uniformly. According to Figure 4, prices changed the most in Markham and Whitby (17.12% and 15.59%, respectively). The lowest increase was in Burlington (9.58%), which was approximately half the rise percentage in Markham.

Figure 3. Average Price of Detached Homes in Different Greater Toronto Cities

Figure 4. Year-over-Year Changes in Average Price of Detached Homes in Different GTA Cities- June 2020 vs. 2019

Figure 5 illustrates the number of new listings of detached homes. New listings have spiked by 72.3% in Greater Toronto, suggesting a return of more sellers to the market. This number was 52.2% in May compared to April. An increase was observed in all nine cities from May to June 2020; most dramatically in Markham and Whitby — 112% and 104%, respectively. The City of Toronto saw a 94% increase in its newly-listed detached homes in June. The lowest increase was in Clarington (31%). 

Figure 5. Number of Detached Homes New Listings across Different Greater Toronto Cities

Figure 6 shows the number of detached homes sold in June 2020 and 2019. Sales of detached homes in four cities, including Brampton, City of Toronto, Richmond-Hill, and Vaughan were lower than the previous year. However, when June 2020 sales were compared to those of May 2020 (Figure 7), the trend in detached properties sales was absolutely increasing in all nine municipalities.

Figure 6. Number of Detached Homes Sold in Different Cities of Greater Toronto

Figure 7. Month-over-Month Changes in Number of Detached Homes Sold in
Different Cities of Greater Toronto- June 2020 vs. May 2020

Figure 8 illustrates the average LDOM — the average days detached homes remained listed on the market. The number of days detached homes spent on the market substantially declined in June compared to May, except in Richmond-Hill where LDOM remained constant. By comparison, the shorter LDOM in June exemplifies the market’s upward trajectory compared to May, when it was more severely impacted by Covid-related lockdown measures.

Figure 8. Average LDOM of Detached Homes in GTA cities

The LDOM for detached homes reduced by 26% in the GTA from May to June. The number increased by 22% in May compared to April. 

Apartments

The same TREB report examined apartment sales and sale prices. Unlike detached homes, apartment sales have declined 16.3% YoY in June. By comparison, sales in May were down 60.4% YoY. Although Covid-related complications persist, the average sold prices rose 7% YoY and 1% from May to June in 2020. June still was a better month for apartment sales when compared to the previous month.

Figure 9 shows average sold prices of GTA apartments in June 2020 versus June 2019.  Increases occurred across all cities except Burlington and Vaughan where prices fell. Mississauga and Markham have experienced the highest increases. The average price trend is presented in Figure 10.

Figure 9. Average Price of Apartments in Different Greater Toronto Cities

Figure10. Year-over-Year Changes in Average Price of Apartments in Different GTA Cities- June 2020 vs. 2019

Figure 11 illustrates the number of new apartment listings. The upward trend is maintained across all selected cities. New listings have spiked by 79.14% from May to June 2020 across the GTA. This number was 52.3% from April to May 2020.

Figure 11. Number of New Listings of Apartments in GTA cities

Figure 12 illustrates the number of apartment sales in June 2020 and 2019. Sales declined in June 2020 across all cities except Clarington and Whitby compared to the past year. However, as seen in Figure 13, from May to June, apartment sales rose across all nine cities in Greater Toronto. Highest growth in sales was observed in Markham and Whitby. The significant month-over-month increase in apartment sales further indicates a dramatic improvement in the market.

Figure 12. Number of Apartments Sold in Different Cities of Greater Toronto

Figure 13. Month-over-Month Changes in Number of Apartments Sold in Different Cities of GTA- June 2020 vs. May 2020

The number of days it took for GTA apartments to sell reduced by 22% in June compared to May (Figure 14). Across all selected cities, the average LDOM decreased in June compared to May, however, Burlington and Clarington apartments remained on the market for a comparatively longer period of time.

Figure 14. Average LDOM of Apartment in GTA cities

Conclusion

Despite ongoing restrictions resulting from the Covid-19 pandemic, June 2020 numbers paint an optimistic picture for the real estate market in the GTA moving forward. The market showed great month-to-month improvements for both detached homes and apartments. Detached homes statistics indicate an upward trend compared to May and last year’s June. 

It seems, due to the current pandemic, people are more willing to buy detached homes to keep socially distant, making their neighbourhoods safer. The apartment market showed positive trends in June compared to May as well; however, it has not surpassed — or even reached — last year’s level in the number of sales in some major cities like the City of Toronto. Nevertheless, in general, properties were sold faster as the days they remained on the market reduced in June compared to May.  

As lockdown measures begin to ease, and consumer confidence rebounds, the housing market will gradually return to some kind of normalcy. However, the new normal will likely look different than the old one.