State of the Real Estate Market: June 2020
In Ontario, we saw a similar story across all major markets – massive improvements in month-over-month home sales with year-over-year average prices up as high as 20%. Most regions are in a seller’s market with average days on market down year-over-year and less listings on the market. In other words, there is lower than usual listings on the market which increases competition amongst homebuyers and can drive home prices up.
The Manitoba real estate market rebounded in June. Sales are up, but new listings are down, which means most markets in Manitoba are in a seller’s market. Based on a recent poll11, 89% of Manitobans say that either the pandemic has not changed their homebuying intentions or has made them more likely to purchase a home.
A good news story is both Edmonton and Calgary are seeing decreases in their inventory supply. Less inventory will help prevent home prices from being driven down further. Average selling prices are down less than 3% year-over-year, which considering we are amidst a global pandemic, isn’t as dire as one might have predicted.
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 a decline in year-over-year sales activity by 11.6%. However, new listings are up 13.8% year-over-year. This coupled with low listing days on market at 15 days on average (3 days fewer than June 2019), indicates the Toronto real estate market is improving and the pace of the market is picking up. Compared to Toronto East and Toronto West, Toronto Central accounted for 45% of total sales and for 54% of new listings that occurred in June. The average selling price for a home in Toronto is $1,022,138, a year-over-year increase of 11.7% and a month-over-month increase of 7%.
The Toronto Regional Real Estate Board (TRREB) reports2 the Peel region experiencing a decline in year-over-year sales activity by 6.5%. The average listing days on market sits at 16 days, which represents almost 16% less days on market than June 2019. Brampton accounted for more than 50% of total June sales, while Mississauga accounted for 47% of new listings coming onto the market. Impressively, the average selling price for a home in Caledon is over $1 million. The average selling price for a home in the Peel region is $866,830, a year-over-year increase of 14.3% and a month-over-month increase of 7.3%.
The Ottawa Real Estate Board (OREB) reported3 a drastic month-over month improvement. In May, sales were down 44%, but in June, sales were only down 2% year-over-year. The market is improving, and approximately 56% of homes sold in June went for over the asking price. OREB President Deborah Burgoyne commented, “June’s new listings doubled compared to April and increased 45% from the number of listings that came onto the market in May. A consequence of these rapid sale turnarounds is that housing inventory does not have an opportunity to build. Residential inventory is now 52% lower than last year at this time, and condominium supply is down 42%. We continue to be in a strong seller’s market, with less than one month’s supply currently available.” The average selling price for a condominium-class property is $360,992, which represents a year-over-year increase of 17% and a month-over-month increase of 5.1%. The average selling price for a residential-class property is $575,623, a year-over-year increase of 11.2% and a month-over-month increase of 5.1%.
The Toronto Regional Real Estate Board (TRREB) reports4 the Halton region seeing 100% more sales in June than it did in May. This, along with the 90% increase in new listings and the substantial month-over-month average selling price increase, indicates the Halton region’s real estate market is picking up quickly. There was a healthy split amongst sales in June between the four main areas in Halton; Oakville accounted for 32.5% of sales, Burlington at 29.5%, Milton at 25.4%, and Halton Hills at 12.6%. Average days on market sits at 20 days, which is 3 days less than in June 2019. The average selling price for a home in the Halton region is $955,218, a year-over-year increase of 12.7% and a month-over-month increase of 19.9%.
In the Hamilton-Burlington region5, sales are down only 0.2% year-over year and are up 53% from last month. Townhomes saw the greatest amount of sales activity in June. REALTORS® Association of Hamilton-Burlington (RAHB) President Kathy Della-Nebbia reports, “With the reopening of the province, and the increased confidence in both the economy and the health of our communities, we are seeing higher activity in both sales and new listings throughout the RAHB market area. Typically, spring is busier than summer; however, COVID-19 seems to have pushed the market back by a few months.” The Hamilton region is comprised of an array of cities, which results in varying home prices. In Niagara North, the average selling price is $586,504, a year-over-year decrease of 0.9% and a month-over-month decrease of 7.9%. In Haldimand County, the average selling price is $555,935, a year-over-year increase of 19% and no change month-over-month. In Hamilton, the average selling price for a home is $619,049, a year-over-year increase of 14% and a month-over-month increase of 2.5%.
Despite a 38% decrease in year-over-year sales activity in May, the Niagara region6 saw a 2% year-over-year increase in June. Terri McCallum, President of the Niagara Association of REALTORS®, comments, “We have experienced a very healthy 48% increase of new listings in June over May, (down only 1.5% over June 2019) with a corresponding increase of 59% in sales. Buyers and sellers are embracing the use of Covid Declaration [sic] forms as another step forward in safety protocols.” Average days on market is 40 days compared to 38 days in June 2019, so homes are selling at a slightly slower pace than last year. The average selling price for a home in the Niagara region is $463,600, a year-over-year increase of 11.4% and a month-over-month increase of 1.6%.
Home sales in Kitchener-Waterloo7 increased 2.1% year-over-year and 57.6% month-over-month, indicating further improvements in the market. Colleen Koehler, President of the Kitchener-Waterloo Association of REALTORS®, comments, “After a pandemic–induced delay to the typical spring market, home sales sprung back to life in a big way in June. As Waterloo region entered stage two of reopening, we saw many buyers and sellers resuming their home buying and selling plans.” COVID-19 has not impacted average days on market for sellers, with average days on market at 16 days, compared to 20 days at the same time last year. This, coupled with low supply, indicates the region is in a seller’s market. All residential property types saw average year-over-year price increases. The average selling price for a home in Kitchener-Waterloo is $601,285, a year-over-year increase of 12.8% and a month-over-month increase of 5.8%.
In Brantford8, home sales increased 4% year-over-year and 14.6% month-over-month. The best-selling property type was detached homes with the average price climbing 17.1% year-over-year to $577,539. The amount of new listings coming onto the market in June increased year-over-year by 13.4%. The average selling price for a home in Brantford region is $524,670, a year-over-year increase of 13.3% and a month-over-month increase of 3.9%.
The London and St. Thomas Association of REALTORS® (LSTAR) reported9 an increase in year-over-year sales of 13.8%. This is a great improvement from last month’s decrease in year-over-year sales of over 40%. Blair Campbell, 2020 LSTAR President, commented, “This makes last month the second-best June for home sales since LSTAR began tracking data, back in 1978. In all LSTAR's main regions, June's volume of residential real estate transactions was absolutely remarkable: Middlesex County and Strathroy had their best June ever, with 99 and 39 home sales respectively; St. Thomas and Elgin County recorded their second best June, with 97 and 77 home sales respectively; and London's 748 home sales were right on par with the five-year average." All regions within the LSTAR market saw year-over-year increases in selling prices, and impressively, Elgin County saw a 32.6% increase in year-over-year selling prices. The average selling price for a home in the London region is $473,998, a year-over-year increase of 17.8% and a month-over-month increase of 6.3%.
Windsor-Essex County10 experienced a decrease in year-over-year market activity of 7.4%, a major improvement from last month’s decrease of 36.7% decrease in year-over-year activity. For home sales in June, the region saw month-over-month improvements of 58.7%, with year-over-year figures down just 3.4%. In June, 71% of sales occurred in the $300,000-$549,999 price range. The average selling price for a home in the Windsor region is $406,113, a year-over-year increase of 21.1% and a month-over-month increase of 5.7%.
The Winnipeg real estate market saw a 24% increase in year-over-year sales in June, which is an amazing improvement from May’s year-over-year 19% decrease11.
Looking at the first six months of the year, the real estate market is essentially equal to 2019 sale levels, with only 1% (or 44 units) shy of matching the January to June 2019 volume. Considering for the past three months we have been in a pandemic, the market has fared well and looks like it will continue to improve.
New listings coming onto the market in June matched June 2019 figures, but looking at year-to-date listings, we are in a year-over-year deficit of 22% for active listings. This means that many markets in Manitoba are in a seller’s market, with more buyers in the market than homes available.
Catherine Shellenberg, president of WinnipegREALTORS® commented, “We have a reduced inventory compared to the last few years with 3 months available if no new listings were to come on to our market based on current sales activity. There are a number of Winnipeg neighbourhoods in particular with fewer residential-detached listings and very high sales to active listings ratios.”
The sale-to-listing ratio of 99.3%. This means that 99.3% of the homes sold in June sold for asking price or more. Of single-detached homes and condominiums sold, 29% and 13% of them sold for asking price or more, respectively.
The average selling price for a single-detached home is $340,085, a year-over-year increase of 1.6% and a month-over-month increase of 3.9%. The average for a semi-attached home is $254,521, a year-over-year decrease of 5.3% and month-over-month decrease of 4.6%. The average for a condominium is $257,961, a year-over-year decrease of 5.4% and month-over-month decrease of 12.9%.
The Edmonton real estate market12 saw a 13.7% increase in year-over-year sales, and a 77.3% increase from May 2020. And new listings are up too; year-over year by 16.6% and month-over-month by 20.2%.
Another good piece of news for the Edmonton market is overall inventory decreased nearly 16% year-over-year, meaning the market is moving towards more balanced conditions, albeit slowly. Homes are selling at the same pace as last year, with average days on market sitting at 59 days. This represented a seven say decrease from May.
REALTORS® Association of Edmonton Chair Jennifer Lucas comments, “The Edmonton market prices have declined in June, however, there has been a slight increase in year-over-year unit sales. There have also been more sales of single-family homes, condos and duplexes compared to June of last year.”
The average selling price for a home in Edmonton is $360,179, representing a 1.5% year-over-year decrease and 1.8% month-over-month increase.
In Calgary13, compared to June 2019, sales are down 1.7% and new listings are up 6.5%. With a decrease in sales and an increase in new listings, the amount of inventory on the market increased, but is still well below last year’s levels with less than four months of supply. This is the lowest it has been since May 2019, which is good news for Calgary as conditions slowly move towards establishing a greater balance between supply and demand.
Townhomes were the popular property type to come onto the market in June, with a 21% increase in new listings compared to the same month last year. And townhomes were the only property type to see positive year-over-year sales. If you own a townhome and are thinking of selling it, now may be a good time to do so since there appears to be buyers in the market for this property type.
The average selling price for a home in Calgary is $411,300, representing a 2.8% year-over-year decrease and 1.8% month-over-month increase.
If you need to sell your home or buy a home during the outbreak, rest assured that a REALTOR® can help you navigate these murky waters. Purplebricks is here to support Canadians by providing them full-service real estate 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 June 2020 Market Update
2 TRREB June 2020 Market Update
3 OREB June 2020 Market Update
4 TRREB June 2020 Market Update
5 RAHB June 2020 Market Update
6 NAR June 2020 Market Update
7 KWAR June 2020 Market Update
8 BRREA June 2020 Market Update
9 LSTAR June 2020 Market Update
10 WECAR May 2020 Market Update
11 WinnipegREALTORS® June 2020 Market Update
12 REALTORS® Association of Edmonton June 2020 Market Update
13 Alberta Real Estate Association June 2020 Market Update