OCTOBER 2020 REAL ESTATE MARKET REPORT:

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GTA REALTORS? RELEASE OCTOBER 2020 STATS

Greater Toronto Area REALTORS? reported 10,563 home sales through TRREB’s MLS? System in October 2020 – up by 25.1 per cent compared to 8,445 sales transaction reported in October 2019. Sales and new listings reached record levels for the month of October. New listings for October 2020 were 17,802 - up by 36.4 per cent compared to new listings of 13,053 in October of 2019. Average home prices in GTA was $968,318 up by 12.6 per cent in October of 2020 compared to $851,877 in 2019. In the detached market segment, the pace of annual sales growth far outstripped growth in new listings. On the contrary, the condominium apartment market segment experienced more than double the new listings compared to October 2019, whereas sales were only up by 2.2 per cent over the same period.

Competition between buyers of single-family homes, and particularly detached houses, remained strong last month and continued to support double-digit annual rates of price growth in many GTA neighborhoods. In contrast, condo buyers have benefited from much more choice compared to last year. Pre-COVID polling had already pointed to an increase in investor selling in 2020. The pandemic only added to this trend with a stall in economic growth and a halt to tourism impacting cash flows for many investors. This price growth was driven mostly by the low rise market segment especially the detached, semi-detached, townhouses and low rise condominium apartment segments in the City of Toronto and surrounding area.

Improving economic conditions and extremely low borrowing costs sustained record-level sales in October, as we continued to account for the substantial amount of unexpressed demand that resulted from the spring downturn. Further improvements in the economy, including job growth, would support strong home sales moving forward. However, it will be important to monitor the trajectory of COVID-19 cases, the related government policy response, and the impact on jobs and consumer confidence.

MY EXPERT ADVICE

Many of my clients who are considering selling or buying wondering whether home prices will increase in 2021, or will it all come crashing down.

I wish, I had a crystal ball to tell you what is going to happen in 2021 but from 15 years of experience watching the real estate market closely and the uncertainty in economic conditions.

A deep recession could pop this bubble but only a few think it'll occur this coming year and some believes the bubble will burst in 2022. Either way, the choice is yours.

I say, doesn't matter what happens next, investing in Canadian real estate is much a safer bet.

IF YOU ARE A FIRST TIME HOME BUYER OR INVESTOR STAY PUT

When you’re looking to buy, sell, invest or for real estate market condition, reports and information to help you make vital real estate business or financial decisions, please feel free to call your trusted, reliable and knowledgeable friend in the business Joseph Azimi, Award Winning Hall Of Fame Luxury Real Estate Broker With RE/MAX Real Estate Centre Inc., Brokerage.

STAY SAFE AND STAY HEALTHY