Ontario Real Estate Market Update: July 2020
Overall July was a record-breaking month in terms of sales activity for many markets 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%.
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%.
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.