Summer might be coming to a bittersweet end, but the '905' residential housing market continued to sizzle in August, figures from the Toronto Regional Real Estate Board (TRREB) show.
In fact, the latest numbers show that activity in the 905 region outperformed levels in the '416', for sales, the number of new listings, and for affordability in August.
While 10,775 transactions were recorded in the Greater Toronto Area (GTA) last month, the 905 region accounted for 7,41o of the sales -- 4,045 more than in the 416.
In August, detached homes were a hot-ticket item in the 905, with realtors selling 4,330 listings, a year-over-year increase of 47.3%. Townhomes were also in demand, as 1,501 exchanged hands, up 46.4% from the same time last year. There were 750 condo sales last month, up 14.5% year-over-year, while semi-detached homes accounted for 727 sales, up an impressive 60.8% from August 2019.
TRREB August 2020
Those in search of more affordability and options should definitely consider looking in the 905, as average prices for all home segments were significantly lower than the current averages throughout the 416, while the number of new listings available is notably higher. In August, the number of new listings in the 905 reached 11,100, a difference of 3,709 from the 416.
Detached homes reached an average of $1,088,559, up 18.5% year-over-year; semi-detached homes climbed 13.7% annually to $784,951, while the average price for a townhouse in the 905 is now $719,667, up 16%, and condo apartments are now sitting at an average of $540,491, a 12.9% increase from the same time last year.
What's more, the average price for all housing types in the 905 is $923,656, which is $187,850 less than the current average price in the 416.
Zain Jafrey, a real estate agent with Coldwell Banker, says the 905 has seen tremendous growth this year and has outperformed the 416 in all aspects, something he believes will most likely continue to happen through to the end of the year.
"What is most important to note is that demand is shifting from condominiums to low-rise market segments; many families in the 416 are exchanging their condominiums for detached, semi, or townhome properties in the 905. Families are turning to the 905 for affordability and larger living spaces," explained Jafrey.
"Supply and demand have played a critical role in the last couple of months, and demand will continue to be a concern. Low-interest rates, as well as low inventory, will continue to drive up prices in all segments," says Jafrey, adding that it will also be important to note the shift as the workplace changes.
TRREB August 2020
“Increased demand for ownership housing has been based on improving economic conditions, in terms of monthly GDP growth and job creation, and the continuation of very low borrowing costs,” says Lisa Patel, TRREB President.
For the second month in a row, Patel attributed the lack of travel amid COVID-19 to the increased activity in the GTA housing market, which has been satisfying pent-up demand from the spring when stay-at-home orders and travel restrictions were first implemented.