September was another record month in the Greater Toronto Area’s housing market. We had 11,083 sales which are up 42.3% in comparison to September 2019. Following record sales in the third quarter of 2020 and for the first 9 months of 2020 sales are approximately 1% higher compared to the same time period in 2019.
Given that we did not have a spring market as a result of being lockdown due to COVID-19 we are seeing pent-up demand plus improved economic conditions and extremely low mortgage interest rates are resulting in strong real estate sales. Will this trend continue? It all depends on the impact of the second wave of COVID-19 and related government policy response and the impact this will have on jobs and consumer confidence.
Year-over-year the sales growth was primarily driven by detached, semi-detached, and townhomes. There continues to appear to be increased demand for suburban housing surrounding the City of Toronto.
The average price of a home in the GTA is $960,772 which is up 11.6% in comparison to September 2019. Condominiums are the housing segment that experienced the lowest slower growth of 6.6%.
However, in September 2020 market conditions lightened up a bit in comparison to September 2019 when sales started to increase at a much faster pace than new listings.
The economic indicators have set the foundation for the housing market to continue to do well but how well the housing market does for the balance of the year will depend on the impact that COVID-19 will have on consumer confidence.