Tag Archives: Lisa Patel

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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Caution needed with real estate market stimulus

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Caution needed with real estate market stimulus

TRREB has submitted a detailed policy brief to all levels of government to address economic recovery initiatives surrounding the real estate market. Our key recommendation message is to use caution in implementing demand-side real estate market stimulus.

After a sharp decline in market activity, current real estate indicators are showing a substantial recovery in the GTA real estate market. Before the onset of COVID-19, there was a great deal of pent-up demand in the market. This has arguably increased further over the past three months.

Barring any setbacks, including a sustained second wave of the pandemic or a prolonged recession, we should continue to see stronger market conditions in the second half of 2020 as households look to satisfy their ownership housing needs.

Moving forward, housing affordability in the GTA should continue to be a priority and governments should approach with caution when considering any additional demand-side stimulus to the GTA real estate market. With that said, the best way to address this is by ensuring adequate and appropriate housing supply, which was also set out in our policy brief submission to all levels of government.

TRREB has long called on all levels of government to address the “missing middle.” We continue to do that with our economic recovery initiatives brief and recommend that all governments expedite the creation of this type of housing, including expediting the City of Toronto’s consideration of expanding yellow belt housing opportunities. This refers to the 35 per cent of City land where 70 per cent is currently zoned for detached homes. A City report was recently released in response to a Council direction to report on options to increase missing middle housing options.

TRREB’s economic recovery initiatives brief also outlines recent market statistics, which show a significant rebound in the GTA real estate market since the start of the pandemic. It also outlines results of recent research conducted by Ipsos Public Affairs, which shows that homebuying intentions remain stable and that the supply of homes listed for sale could continue to be outpaced by demand.

We have also outlined a number of initiatives that could be considered if economic conditions worsen, including:

  • Municipal and Provincial Land Transfer Tax holidays/deferrals, rate adjustments, and expanded rebates for first-time buyers
  • Property tax deferrals
  • Postponement of consideration of potential vacancy taxes
  • Adjustments to the mortgage stress test
  • Allow 30-year amortizations for insured mortgages, and
  • Adjustments and expansion of the RRSP Home Buyers’ Plan

TRREB has been working closely with all levels of government to provide up-to-date data on the state of the real estate market. We will continue to do so to help decision makers respond to the current state of affairs in an informed way.

Lisa Patel is President of the Toronto Regional Real Estate Board, a professional association that represents 54,500 professional realtor members in the Greater Toronto Area. You can contact her at trebpres@trebnet.com. For updates on the real estate market, visit trreb.ca.

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Increased market activity in Stage Two of reopening the economy

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Increased market activity in Stage Two of reopening the economy

Although we saw a sharp decline in market activity during the onset of the COVID-19 pandemic, we’ve now entered stage two of reopening of the economy and we can see a further increase in market activity.

For June 2020, 8,701 sales were reported through TRREB’s MLS System. This result represented a substantial increase over the May 2020 sales result, both on an actual (89 per cent) and seasonally adjusted basis (84 per cent), and down by only 1.4 per cent compared to June 2019.

New listings were up slightly on a year-over-year basis by 2.1 per cent. However, active listings at the end of June 2020 were down by 28.8 per cent compared to June 2019. Growth in new listings will need to outstrip growth in sales for a number of months before active listings approach last year’s levels.

The average selling price for all home types increased by 11.9 per cent to $930,869, compared to June 2019. The actual and seasonally-adjusted average selling prices were also up substantially compared to May 2020, by 7.8 and 9.8 per cent, respectively.

Pent-up demand pre- and post-COVID

Following the broader movement to reopen the economy in June, we experienced a very positive result in terms of home sales and selling prices. Before the onset of COVID-19, there was a great deal of pent-up demand in the market. This pent-up demand arguably increased further over the past three months. We are still in the early days of recovery, but barring any setbacks, we should continue to see stronger market conditions in the second half of 2020, as households look to satisfy their ownership housing needs.

It will be important to monitor housing market conditions as economic recovery continues in the second half of 2020 and into 2021. Policymakers should proceed cautiously with any demand-side stimulus. The persistent lack of listing inventory in the GTA understandably took a back seat to COVID-19 related issues in the short term, but supply should once again be top-of-mind once the recovery takes hold, to ensure long-term affordability in the GTA.

To further gauge the impact of COVID-19 on the GTA housing market and to gain insight on what the future holds for demand and supply, TRREB undertook a second poll of consumer intentions through Ipsos between May 25 and 31, 2020. The key findings from this poll was very much in line with the results from the April 2020 poll. Buying intentions remained strong across both surveys, with respondents indicating they were likely to purchase a home in the next 12 months. In terms of listing intentions, although up from the April Ipsos poll (21 per cent in May versus 17 per cent in April), the result remained well below the 32 per cent listings intentions mark recorded in the spring of 2019.

Again, we can recognize a gap between buying and listing intentions, which demonstrates a broader trend exhibited in the GTA over the past few years. Furthermore, this gap underpins the requirement of policymakers to take action on the housing supply front, both in terms of aggregate supply and increasing the diversity of housing types available to homebuyers.

Lisa Patel is President of the Toronto Regional Real Estate Board, a professional association that represents 54,500 professional realtor members in the Greater Toronto Area. You can contact her at trebpres@trebnet.com. For updates on the real estate market, visit trreb.ca.

 

Featured Image by Royal LePage

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Increased market activity in stage two of reopening the economy

Latest News


Increased market activity in stage two of reopening the economy

Featured Image by: Royal LePage

Although we saw a sharp decline in market activity during the onset of the COVID-19 pandemic, we’ve now entered stage two of reopening of the economy and we can see a further increase in market activity.

For June 2020, 8,701 sales were reported through TRREB’s MLS System. This result represented a substantial increase over the May 2020 sales result, both on an actual (89 per cent) and seasonally adjusted basis (84 per cent), and down by only 1.4 per cent compared to June 2019.

New listings were up slightly on a year-over- year basis by 2.1 per cent. However, active listings at the end of June 2020 were down by 28.8 per cent compared to June 2019. Growth in new listings will need to outstrip growth in sales for a number of months before active listings approach last year’s levels.

The average selling price for all home types increased by 11.9 per cent to $930,869, compared to June 2019. The actual and seasonally-adjusted average selling prices were also up substantially compared to May 2020, by 7.8 and 9.8 per cent, respectively.

Pent-up demand pre- and post-COVID

Following the broader movement to reopen the economy in June, we experienced a very positive result in terms of home sales and selling prices. Before the onset of COVID-19, there was a great deal of pent-up demand in the market. This pent-up demand arguably increased further over the past three months. We are still in the early days of recovery, but barring any setbacks, we should continue to see stronger market conditions in the second half of 2020, as households look to satisfy their ownership housing needs.

It will be important to closely monitor housing market conditions as economic recovery continues in the second half of 2020 and into 2021. Policymakers should proceed cautiously with any demand-side stimulus. The persistent lack of listing inventory in the GTA understandably took a back seat to COVID-19 related issues in the short term, but supply should once again be top-of-mind once the recovery takes hold, in order to ensure longterm affordability in the GTA.

In order to further gauge the impact of COVID-19 on the GTA housing market and to gain insight on what the future holds for housing demand and supply, TRREB undertook a second poll of consumer intentions through Ipsos between May 25 and 31, 2020. The key findings from this poll was very much in line with the results from the April 2020 poll. Buying intentions remained strong across both surveys, with respondents indicating they were likely to purchase a home in the next 12 months. In terms of listing intentions, although up from the April Ipsos poll (21 per cent in May versus 17 per cent in April), the result remained well below the 32 per cent listings intentions mark recorded in the spring of 2019.

Again, we can recognize a gap between buying intentions and listing intentions, which demonstrates a broader trend exhibited in the GTA over the past few years. Furthermore, this gap underpins the requirement of policymakers to take action on the housing supply front, both in terms of aggregate supply and increasing the diversity of housing types available to home buyers.

Lisa Patel is President of the Toronto Regional Real Estate Board, a professional association that represents 54,500 professional realtor members in the Greater Toronto Area. You can contact her at trebpres@trebnet.com. For updates on the real estate market, visit trreb.ca.

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