Ontario Real Estate Market Update: September 2020
Ontario’s real estate market is showing no signs of slowing down, despite the upheaval of school being back in session and concerns surrounding the second wave of the pandemic.
It’s been a month of tremendous sales activity in all major markets across the province, with year-over year growth ranging from 19-74%. Buyer demand remains high, and with not enough listings in the market to meet demand, prices continue to rise while the average days on market declines. While month-over-month prices aren’t experiencing the same kind of rapid growth witnessed earlier in the spring, all markets are seeing significant year-over-year growth, meaning many buyers are competing in higher price ranges than they would have a year ago. In seller’s markets like these, buyers must act fast.
If you’re planning to sell or buy a home this fall, a local Purplebricks REALTOR® can guide you with expert insight into the current market while keeping your safety top of mind. Plus, we put more money in your pocket: last year, we saved our home sellers an average of $13,500 in commission†, and we give buyers $2,000 cash back* when they purchase a home with one of our agents. In any market, we’re here for you.
The Toronto Regional Real Estate Board (TRREB) reports1 that the City of Toronto is seeing consistently high sales at 3,555 homes sold, up 19% from September 2019.2 The average days on market held firm at just 16 days since August, and with such high demand for homes, many sellers are receiving asking price or higher. “With competition between buyers increasing noticeably, double-digit year-over-year price growth was commonplace throughout the region in September, resulting in the overall average selling price reaching a new record,” says Jason Mercer, TRREB’s Chief Market Analyst, of the GTA. The average selling price for a home in the City of Toronto is $1,022,051, an increase of 12% year over year and 1% month over month. Detached homes totalled 1,161 sales at an average price of $1,487,122, semi-detached homes saw 421 sales at an average price of $1,145,559, townhouses came in at 139 sales at an average price of $1,118,632, and condo apartments accounted for 1,549 sales at an average price of $686,191.
The Toronto Regional Real Estate Board (TRREB) reports3 2,363 residential sales in the Peel region in September, representing an increase of 45% year over year4 and 3% month over month. Brampton accounted for 48% of total September residential sales. Average days on market dropped by 25% from last September, coming in at only 15 days – one day longer than in August of this year. Inventory levels are sitting at 1.3 months, meaning it would take only that long to sell all available listings at the current rate of sales; anything under three months indicates that it’s a seller’s market. The average selling price for a home in the Peel region is $904,963, a year-over-year increase of 18% and a month-over-month increase of 1%.
The Ottawa Real Estate Board (OREB) reports5 continued growth in sales activity with 2,329 residential properties sold, a year-over-year increase of 51% and a month-over-month increase of 15%. Of those sales, 1,759 were residential-class homes (including detached homes, semi-detached homes, townhouses, and duplexes) for a 58% growth year over year, while 570 sales were in the condominium-class category for a growth of 31% in the same period. “The sheer volume of transactions in September, compared to a year ago, confirms the Ottawa resale market is continuing on its upward trajectory,” OREB President Deborah Burgoyne observes, but “whether this momentum in our market will continue is difficult to predict.” However, she points out that “continued increase in new listings and demand remaining strong allows us to be cautiously optimistic.” September saw 2,909 new listings enter the market, with the average selling price for residential-class properties growing by 19% over last year to $622,557, and the average selling price for condominium-class properties growing by 20% to $373,565.
The Toronto Regional Real Estate Board (TRREB) reports6 the Halton region is continuing to see a dramatic increase in sales activity with 1,164 homes sold in September, representing a year-over-year increase of 74%.7 New listings rose 17% year over year to 1,631, but with inventory diminishing to only 1.5 months (meaning it would take 1.5 months to sell all available listings at the current rate of sales), homes are in high demand. The average days on market increased from 17 to 18 month over month, though that number is still down from 25 in September 2019. The average selling price for a home in Halton is $1,087,859 – a year-over-year increase of 20% and a month-over-month increase of 5%.
The REALTORS® Association of Hamilton-Burlington (RAHB) reports8 sales across the region have increased by an impressive 54% year over year and 38% month over month. The average selling price for residential properties continued to rise by 4% month over month – this in spite of new listings jumping up 33% from last month. RAHB President Kathy Della-Nebbia notes that while we saw “an increase in new listings in our area […] there is a low number of active listings, which was down in September by over 40 per cent compared to the same month last year. This low inventory is driving the average price higher.”
The Hamilton region comprises an array of cities, which results in varying home prices. In Niagara North, the average selling price is $690,743, representing a year-over-year increase of 25% and a month-over-month increase of 6%. In Haldimand County, the average selling price is $529,440, a year-over-year increase of 11% and a month-over-month decrease of 5%. In Burlington, the average selling price is $912,794, a year-over-year increase of 18% and a month-over-month increase of 7%. In Hamilton, the average selling price for a home is $664,330, a year-over-year increase of 22% and a month-over-month increase of 0.3%.
The Niagara Association of REALTORS® (NAR) reports9 911 homes sold in September, representing a stunning 57% increase over the same month last year despite a slight dip in sales since August. Terri McCallum, President of NAR, notes that “[h]istorically low interest rates, higher demand and continued lower supply” could explain the rise in sales. Despite new listings coming in at 1,156 – eight listings short of last month – many areas in the region are seeing slight decreases in new listings year over year. One of the exceptions is St. Catharines, with a 20% increase in new listings year over year and a 35% increase in sales compared to September 2019. The benchmark price (based on an ‘average’ home with three bedrooms and two bathrooms) for a home in the Niagara region is $491,100, a year-over-year increase of 16% and a steady month-over-month increase of 2%, while the average days on market is 31, down from 35 in August.
September was another record-breaking month for sales according to the latest Kitchener-Waterloo Association of REALTORS® (KWAR) report.10 There were 758 residential homes sold – a month-over-month increase of 42% and the most ever recorded for the month of September. Colleen Koehler, President of KWAR, states, “This is far more home sales than what we would normally see in September as buyers continue to play catch up from the COVID-19 hindered spring market,” further observing that “[w]hile the pandemic has had devastating impacts on many aspects of our lives it has only solidified the importance of home and homeownership.” The region is in a strong seller’s market: in spite of the 929 new listings added to the MLS® System (a 13% increase over new listings last September), inventory is holding at only one month’s supply, indicating that buyer demand is still high. The average time to sell is 14 days – down 39% year over year – and the average selling price for a detached home is $637,691, a year-over-year increase of 18% and a month-over-month increase of half a percent.
The London and St. Thomas Association of REALTORS® (LSTAR) reports11 a record breaking 960 homes sold across the region, representing a 25% increase over September 2019. “The strong momentum experienced during the summer months continued through September," noted LSTAR President Blair Campbell. "Similar to many other housing markets across Canada, many are still playing catch up from the COVID-19 lockdown we had during the spring.” The median days on market dropped one day from August to 9, and inventory has dropped to just under a month, meaning it would take less than one month to sell all available listings at the current rate of sales.12 The average selling price for a home in the London region reached a new record at $521,883 – an increase of 28% over the same month last year and an increase of 98% compared to September 2015.
The Windsor-Essex County Association of REALTORS® reports13 a record 738 residential sales for the month of September, representing a 32% increase from the same month last year. “While new listings continue to rise steadily,” observes Lorraine Clark, President of the Windsor-Essex County Association of REALTORS®, “the main story again this month is the twin factors of strong demand and record low overall supply, which is creating upward pressure on prices. This has driven the average price to a new record for the fifth month in a row.”14 Despite 951 new residential listings hitting the market, overall supply remains low. The average sale price gained an impressive 31% year over year at $433,043, with 45% of all sales occurring in the $300,000-$549,999 price range.
The Brantford Regional Real Estate Association (BRREA) reports15 244 residential properties sold in September, representing a 43% year-over-year increase and a new record for the month of September. With new listings numbering only 266 – a 13% drop from August – President of the BRREA Rose Sicoli notes, “new listings have struggled to keep pace with sales, retreating slightly from the 300+ listings a month we have seen over the last few months. The main story in our region continues to be the twin factors of strong demand and low overall inventory. These 2 elements remain contributors to the recent upwards price momentum.” The inventory of available homes sits at 0.8 months (meaning it would take less than one month to sell all available homes at the current rate of sale), which is well below the long-standing average of 3.1 months. The average price for a home is $532,267, up 23% from September 2019 and down 6% from August of this year.
Barrie & Simcoe County
The Barrie & District Association of REALTORS® Inc. reports16 record-breaking sales for the month of September, with 1,031 homes sold in Barrie and the surrounding Simcoe County, up 53% from September 2019. “While we are seeing incredible strength in demand, new supply came in lower than this time last year, which is giving us one of the tightest markets on record,” says Robin Jones, BDAR President. “As a result, the pool of available listings is shrinking, and prices continue to reach new record levels.”17 Simcoe County comprises several diverse cities and towns with varying price levels, most of which have not changed notably since August. In Barrie, there were 329 homes sold with an average price of $567,916; in Collingwood, there were 98 homes sold with an average price of $675,278; in Orillia, there were 78 homes sold with an average price of $503,535; and in Wasaga Beach, there were 94 homes sold with an average price of $565,063. The overall average price for the region is $628,403, up 0.8% from August 2020 and an impressive 26% from September of last year.18
The REALTORS® Association of Grey Bruce Owen Sound (RAGBOS) reports19 that the region saw 384 sales in the month of September, representing a 31% increase over September 2019. According to RAGBOS, the market balance is “in seller’s market territory,” no doubt owing to sales activity keeping close pace with the 395 new listings added to the market,20 as well as inventory levels sitting at only 1.5 months21 (meaning it would take only that long to sell all available homes at the current rate of sale). Of the total residential sales, 250 were single detached homes – a 3% decrease from sales in the same category in September 2019.22 The average overall price was $502,003 for an impressive year-over-year increase of 24%, with homes selling at an average of 99% of listing price. The average days on market is 27, down from 36 in September 2019.23
Huron & Perth Counties
The Huron Perth Association of REALTORS® (HPAR) reports24 a record 222 residential sales for the month of September, representing a 20% increase from September 2019. Despite 239 new listings being added to the market for a 9% rise over last September, overall supply remains low at only 1.1 months of inventory (meaning it would take 1.1 months to sell all available homes at the current rate of sale). The long-time average for the region is 4.8 months. “Although new listings appear to have stabilized in our region over the last few months, the story of our local market continues to be the higher than expected demand for this time of year combined with the low overall inventory,” notes Sherrie Roulston, President of the HPAR. “These twin factors continue to contribute to upward price pressures, driving the September average price to the second highest level in history.” The average sale price grew 15% year over year to $461,451.
If you need to sell or buy a home this fall, a local Purplebricks REALTOR® can help you navigate the market with safety and professional insight. Purplebricks supports Canadians by providing full-service real estate experiences that let them keep thousands more in their pockets: our sellers save thousands in commission with our low fixed fee, and our buyers receive $2,000 in cash back* when they purchase a home with one of our REALTORS®. Call 1-855-999-9740 to learn about starting your real estate journey with us.
1. TRREB September 2020 Market Report
2. TRREB September 2019 Market Report
3. TRREB September 2020 Market Report
4. TRREB September 2019 Market Report
5. OREB September 2020 Market Report
6. TRREB September 2020 Market Report
7. TRREB September 2019 Market Report
8. RAHB September 2020 Market Report
9. NAR September 2020 Market Report
10. KWAR September 2020 Market Report
11. LSTAR September 2020 Market Report
12. LSTAR September 2020 Statistical Report
13. WECAR September 2020 Market Report
14. CREA: WECAR September 2020 Market Report
15. CREA: BRREA September 2020 Market Report
16. BDAR September 2020 Market Report
17. CREA: BDAR September 2020 Market Report
18. BDAR September 2020 Market Report
19. RAGBOS September 2020 Market Report
20. RAGBOS September 2020 Market Infographic
21. RAGBOS September 2020 Market Report
22. RAGBOS September 2020 Housing Market by Property Type Infographic
23. RAGBOS September 2020 Market Report
24. CREA: HPAR September 2020 Market Report