Tag Archives: Jason Mercer

Condo prices surge in second quarter

GTA condo prices surge in second quarter

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GTA condo prices surge in second quarter

Condominium prices jumped 5.1 per cent to $619,707 in the second quarter of 2020, from $589,622 in Q2 2019, despite sales dropping more than 50 per cent.

Condo prices surge in second quarter

The Toronto Regional Real Estate Board (TRREB) recently announced that second quarter 2020 condo sales amounted to 3,459 – down 50.8 per cent from 7,024 sales in Q2 2019.

Listings were also down, 21.6 per cent to 8,717 in Q2 2020, compared to 11,114 new listings in Q2 2019.

“The condominium apartment market experienced a dip in sales and new listings in the second quarter of 2020, as many potential buyers moved to the sidelines as a result of public health measures taken to combat COVID-19 and the resulting economic downturn,” says TRREB President Lisa Patel. “With the overall housing market trending toward recovery in June, condo apartment sales will likely improve in the third quarter.”

“It will be important to watch the relationship between condominium apartment sales and new listings as we move through the second half of 2020,” adds Jason Mercer, TRREB’s chief market analyst. “If economic recovery is sustained, the demand for condo apartments will improve. However, the prospect of stricter regulations on shortterm rentals and softer rental market conditions could fuel increased listings of investor-held units. If we see more balanced market conditions, condo price growth could be more moderate compared to lowrise home types.”


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GTA resale sales

GTA resale home sales, prices surge in July

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GTA resale home sales, prices surge in July

Strong growth in sales and prices in the GTA in July was driven primarily by lowrise home types, notably within the city of Toronto, according to the latest data from the Toronto Regional Real Estate Board (TRREB). And in the condominium segment, despite more balanced market conditions, year-over-year price growth remained in the high single digits.

GTA resale sales

Sales recorded a 29.5-per-cent increase over July 2019 – a new record for the month of July, TRREB reports. On a preliminary seasonally adjusted basis, sales were up by 49.5 per cent compared to June 2020.

The overall average selling price was up by 16.9 per cent year-over-year to $943,710. On a preliminary seasonally adjusted basis, the average selling price was up by 5.5 per cent compared to June 2020.

“Sales activity was extremely strong for the first full month of summer,” says TRREB President Lisa Patel. “Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with pent-up demand from the COVID-19-related lull in April and May being satisfied in the summer, as economic recovery takes firmer hold, including the Stage 3 re-opening. In addition, fewer people are travelling, which has likely translated into more transactions and listings.”

“Competition between buyers continued to increase in many segments of the GTA ownership housing market in July, which fueled a further acceleration in year-over-year price growth in July compared to June,” adds Jason Mercer, TRREB’s chief market analyst. “On top of this, we also experienced stronger sales growth in the more-expensive detached market segment, which helps explain why annual growth in the overall average selling price was stronger than growth for the MLS HPI Composite benchmark.”


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Homebuyer intentions remain stable despite COVID-19: TRREB

Homebuyer intentions remain stable despite COVID-19: TRREB

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Homebuyer intentions remain stable despite COVID-19: TRREB

Homebuyer intentions were understandably affected by the COVID-19 pandemic, but a survey by Ipsos Public Affairs for the Toronto Regional Real Estate Board (TRREB) indicates the pause is purely temporary.

The Consumer Home Buying & Selling Intentions Survey captured home buying and selling intentions, along with consumer opinions on preferred government policy directions related to the housing market.

“While COVID-19 has temporarily impacted home sales and listings in the GTA, the Ipsos survey results that show homebuying intentions have remained quite stable certainly suggest that many people will be looking to satisfy pent-up demand for ownership housing once recovery starts to take hold,” says TRREB President Michael Collins.

“As people gradually return to work, consumer confidence will improve, and a growing number of people will look to take advantage of very low borrowing costs to purchase a home. Home purchases will continue to be aided by the use of technology available to realtors, including live-stream open houses.”

GTA-wide, 27 per cent of survey respondents said they were likely (very likely or somewhat likely) to purchase a home in the next 12 months. While buying intentions were down compared to spring 2019 (31 per cent likely), they remained relatively in line with the five-year trend.

Home purchasing intentions were above the GTA average in Toronto (34 per cent), for younger people aged 18 to 34 (45 per cent) and households with children (37 per cent).

The most common reason for not intending to purchase a home over the next 12 months was that they liked their current home (62 per cent). General affordability issues were also a common response. COVID-19-related issues influenced 16 per cent of respondents who indicated that they were unlikely to purchase a home.

“The supply of listings was an issue before the onset of COVID-19, with market conditions tightening and price growth accelerating throughout the first quarter of 2020,” says Jason Mercer, TRREB’s chief market analyst.

“The Ipsos survey results suggest that the supply of listings will continue to be an issue as the economy and housing market recovers,” Mercer adds. “Policy makers have acknowledged that there is a lack of a diverse housing supply in the GTA. While the supply issue has understandably taken a back seat to COVID-related issues in the short term, it should once again be top-of-mind once recovery takes hold.”


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