State of the Real Estate Market: July 2020
Overall July was a record-breaking month in terms of sales activity for many markets in Ontario and Manitoba.
In Ontario, the sizzling figures we saw last month continue to climb in July in all major markets. Sales are increasing, inventory is decreasing, and prices are still on the rise. Lower inventory rates continue to put pressure on demand with markets seeing multiple bids and over asking sales becoming more frequent occurrences. Similar to last month, many regions are seeing year-over-year average home price increases above 20%.
The Manitoba real estate market saw signs of recovery in June that has carried through to July. Sales activity in Winnipeg continues its upward trajectory, jumping from a 24% year-over-year increase in sales last month to an impressive 32% year-over-year increase in sales in July. As a result, July set a record for sales and pushed Winnipeg’s year-to-date sales beyond its 2019 figures despite the pandemic.
The good news continues in Alberta, where inventory in Edmonton and Calgary is still down year-over-year and homes are selling quicker than they did this time last year. Edmonton also saw slight increases in year-over-year and month-over-month average prices, which is welcome news after seeing year-over-year price decreases last month.
If you need to sell or buy a home during the outbreak, rest assured a Purplebricks REALTOR® can help you navigate the market in this unprecedented time. We saved our home sellers an average of $13,500 in commission last year†, and we give buyers $2,000 cash back* when they use a Purplebricks REALTOR® to buy their home.
The Toronto Regional Real Estate Board (TRREB) reports1 the City of Toronto experiencing an increase in year-over-year sales activity of 15%. And while there was a year-over-year increase of 45.5% in new listings, active listings have only increased by 16.4% year-over-year and months of supply has decreased from 1.9 to 1.7. Sales for all regions in the Greater Toronto Area saw a 29.5% increase compared to this time last year, setting a record for the month of July. Sales in the City of Toronto represent 32% of the total sales in all the Greater Toronto Area regions. The average selling price for a home in Toronto is $1,022,138, a year-over-year increase of 21.1% and a marginal month-over-month decrease of 0.47%.
The Toronto Regional Real Estate Board (TRREB) reports2 that the Peel region saw an impressive 29.3% increase in year-over-year sales activity. The region saw a 16.1% year-over-year decrease in active listings with days on market decreased to 16, compared to 19 this time last year. Brampton accounted for nearly 50% of total July sales. The average selling price for a home in the Peel region is $902,257, a year-over-year increase of 18.5% and a month-over-month increase of 4%.
The Ottawa Real Estate Board (OREB) reports3 notable year-over-year increases in sales activity and average prices. OREB President Deborah Burgoyne says, “The resale market is not only holding its own but has surpassed 2019 figures by a significant margin. Summer usually slows down; however, after the pandemic curtailed the spring market this year, we have rebounded well beyond expectations.” Sales activity increased by 19% year over year. The average selling price for a condominium-class property is $357,764, which represents a year-over-year increase of 19% and the average selling price for a residential-class property is $585,084, a year-over-year increase of 20%.
The Toronto Regional Real Estate Board (TRREB) reports4 the Halton region experiencing a surge in year-over-year sales activity of 38.3%. While new listings increased 28% year-over-year, active listings are down almost as much with a decrease of 25% compared to this time last year. Furthermore, days on market sits at 18 days, which is 9 days less than July 2019. These figures are a clear indication that the Halton region is a hot region in Ontario right now. The average selling price for a home in the Halton region is $991,183, a year-over-year increase of 12% and a month-over-month increase of 3.8%.
In the Hamilton-Burlington region5, sales are up 23.7% month-over-month and up 27.8% year-over-year. Inventory levels are down with a year-over-year decrease of 21.4% in active listings. REALTORS® Association of Hamilton-Burlington (RAHB) President Kathy Della-Nebbia reports, “As we can see from the data, activity has resumed to pre-COVID-19 levels, and is actually surpassing the levels we would typically see in the summer due to pent-up demand over the last several months. What is also affecting the market—and more specifically the increase in average price—is the low number of active listings. With less available, buyers have limited choice and the market favours sellers.” The Hamilton region is comprised of an array of cities, which results in varying home prices. In Niagara North, the average selling price is $726,361, a year-over-year increase of 24.8% and a dramatic month-over-month increase of 23.9%. In Haldimand County, the average selling price is $546,416, a year-over-year increase of 20.6% and a month-over-month decrease of 1.71%. In Hamilton, the average selling price for a home is $628,834, a year-over-year increase of 14.6% and a month-over-month increase of 1.6%.
The Niagara region6 saw a 38.5% year-over-year increase in sales activity in July, which is a drastic improvement from the 2% year-over-year increase last month. Terri McCallum, President of the Niagara Association of REALTORS®, comments, “Homeownership is still very much on the minds of Niagara's families. Year over year although the number of new listings in July were down slightly by 4.25%, the number of sales rose by 38%, in turn moving the Home Price Index up in all but 2 of the 10 markets covered by the Niagara Association of Realtors®️.” The average selling price for a home in the Niagara region is $473,500, a year-over-year increase of 13.4% and a month-over-month increase of 2.14%
Home sales in Kitchener-Waterloo7 increased 25.7% year-over-year, a significant jump from the 2.1% year-over-year increase in June. Colleen Koehler, President of the Kitchener-Waterloo Association of REALTORS®, comments, “Competition was high for buyers looking to lock down a house in July. The rate of home sales in July resembled the kind of month we would normally see in May, and I chalk up much of that to the pent-up demand that built as we moved into Stage 3 of reopening in mid-July.” Detached homes in this region saw the largest jump in sales with an increase of 39.3% year-over-year. The average selling price for a home in Kitchener-Waterloo is $639,814, a year-over-year increase of 22.8% and a month-over-month increase of 6.4%.
The London and St. Thomas Association of REALTORS® (LSTAR) reports8 a record-breaking July in terms of sales. Blair Campbell, 2020 LSTAR President, commented, "This was not only the best July for LSTAR, but also for London, which saw 856 residential real estate transactions, a number that is way above the values typically recorded during this summer month." The region saw a 22.8% year-over-year increase in sales; this increase coupled with a 30.4% year-over-year decrease in active listings indicates a clear seller’s market in the region. All regions within the LSTAR market saw year-over-year increases in selling prices, and impressively, Middlesex County saw a 30.3% increase in year-over-year selling prices. The average selling price for a home in the London region is $484,884, a year-over-year increase of 19.6% and a month-over-month increase of 2.3%.
The Windsor-Essex County9 region saw a 5.05% year-over-year increase in sales for the month of July, an improvement from last month’s 3.4% year-over-year decrease in sales. In July, 52% of sales occurred in the $300,000-$549,999 price range. The average selling price for a home in the Windsor region is $427,107, a year-over-year increase of 24.7% and a month-over-month increase of 5.1%.
The strong sales activity the Winnipeg real estate market10 saw in June continues in July with a 32% year-over-year increase in sales. “We are witnessing a very different market this year, with the record month in July bringing us beyond our year-to-date sales in 2019,” said Catherine Schellenberg, president of WinnipegREALTORS®. “While WinnipegREALTORS® forecasted another strong year following a successful 2019 with an expanded rural area, we did not expect such a significant recovery from the drop off in April and May sales activity due to the economic shutdown.”
Looking at the year-to-date sales figures, the real estate market is ahead by 5% compared to the January to July 2019 volume. While sales are up, new listings continue to fall behind with a 9% year-over-year decrease, which has resulted in a 27% decrease in inventory compared to this time last year. This means that many markets in Manitoba are in a seller’s market, with more buyers in the market than homes available.
“Less inventory suggests sellers have been reluctant to participate in our real estate market as opposed to buyers, which has created inventory shortages in a number of MLS® areas,” said Schellenberg. “This market change has resulted in multiple offer situations.”
Single-family homes made up the majority of sales in July at 73%; 31% of those sold for above asking, nearly doubling the number of above asking sales this time last year.
Another first for the region, the most active price range moved up to the $300,000 to $349,999 with nearly 18% of total sales, replacing the previous most active range of $250,000 to $299,999. The average selling price for a single-detached home is $353,450, a year-over-year increase of 9% and a month-over-month increase of 3.9%. The average for a semi-attached home is $272,424, a year-over-year decrease of 6.1% and month-over-month increase of 7%. The average for a condominium is $234,934, a year-over-year decrease of 8.6% and month-over-month decrease of 8.9%.
The Edmonton real estate market11 saw a 13.6% increase in year-over-year sales, and a 5.6% month-over-month increase. New listings also saw a year-over-year increase of 7.5% but saw a decrease of 8.6% month-over-month.
Inventory continues to decline, which is good news for the Edmonton market as this indicates that the market continues to move towards more balanced conditions. Inventory has decreased 15.5% year-over-year and 3.6% month-over-month. Homes are also selling quicker compared to last year—listings averaged 54 days on market, which is a year-over-year decrease of eight days and a month-over-month decrease of five days.
REALTORS® Association of Edmonton Chair Jennifer Lucas comments, “The Edmonton market prices have a slight increase in year-over-year unit sales, as well as month to month sales increase. There have also been more sales of single-family homes, condos and duplexes compared to July of last year. Single family home pricing increased 3.06%, duplexes are down 0.41%, and condos are up 0.97% year-over-year.”
The average selling price for a home in Edmonton is $369,805, representing a 0.68% year-over-year increase and 2.6% month-over-month increase.
The good news continues in Calgary12 where the region saw a 11.8% year-over-year increase in sales, which is great improvement from the 1.7% year-over-year decrease in June. And despite an 11.7% year-over-year increase in new listings, inventory is still down 9.9% year-over-year and months of supply down a whopping 19.4% year-over-year. Lower supply will help edge Calgary toward a more balanced market. While year-to-date sales remain 15% lower than last year’s levels, the positive activity in July is welcome news and indicates that the market is moving in the right direction.
Apartments were the most popular property type to come onto the market in July with a 32% year-over-year increase in new listings, followed by townhomes with a 22% year-over-year increase in new listings. The only property class to see a year-over-year increase in average price was detached homes with a 0.3% increase. All property classes apart from townhomes saw month-over-month increases in average price; detached homes saw a 2.3% increase, semi-detached homes saw a 1.1% increase and apartments saw a 1% increase. Townhomes saw a 1.3% month-over-month decrease in average price.
The average selling price for a home in Calgary is $418,000, representing a 1.2% year-over-year decrease and 1.6% month-over-month increase.
If you need to sell your home or buy a home during the outbreak, rest assured that a Purplebricks REALTOR® can help you navigate the market.
Purplebricks is here to support Canadians by providing them with a full-service real estate experience while saving them thousands in commission when selling their home. As for homebuyers, we share the commission by giving buyers $2,000 in cash back* when they buy a home with us. Call 1-855-999-9740 for more information.
Randall Weese is a licensed REALTOR® with 14 years’ experience in Ontario who currently holds Broker licenses in Ontario, Manitoba and Alberta. Randall has worked in a variety of business models within the real estate industry. He has been a REALTOR® at one of the largest brokerages in Canada, managed a boutique brokerage, and founded and operated his own brokerage in the Greater Toronto Area; all in addition to acting as a listing agent on thousands of homes across the country during his career. Randall is currently working at Purplebricks where he is the Broker of Record for Ontario, Broker for Alberta and Associate Broker for Manitoba. Furthermore, he oversees Purplebricks’ Customer Service and Compliance departments.
1. TRREB July 2020 Market Update
2. TRREB July 2020 Market Update
3. OREB July 2020 Market Update
4. TRREB July 2020 Market Update
5. RAHB July 2020 Market Update
6. NAR July 2020 Market Update
7. KWAR July 2020 Market Update
8. LSTAR July 2020 Market Update
9. WECAR July 2020 Market Update
10. WinnipegREALTORS® July 2020 Market Update
11. REALTORS® Association of Edmonton July 2020 Market Update
12. Alberta Real Estate Association July 2020 Market Update