Realtors Imply a Hot Home Selling Market for Summer 2020
Friday Aug 21st, 2020Share
Most Canadians are very careful right now about where they put their money and investments. With the COVID-19 resurgence of cases, people are playing it safe and saving up money for the anticipated second wave. But this has not discouraged the reinvigorated upswing of activity in the real estate market.
According to the Canadian Real Estate Association numbers (CREA), there is a whopping 62,355 highest home sales in July 2020 with the data going back about 40 years. There has been a +26.01% increase in sales compared to June 2020, and about +30.5% more sales compared to July 2019, with an average home selling price of $571,500, up 14.3% from last month.
So why are home sales on the rise? This is largely contributed by the slow market in the early stage of COVID-19 and people did not list or purchase homes to play it safe. However, with the stage re-opening in the provinces, there has been a rebound of activity in real estate.
Costa Poulopoulos, the chairman of CREA said "...With more and more of regular everyday life opening back up, REALTORS® and their clients across Canada are making up for a lost time, and it’s been a very busy summer as a result..."
This is shown by a 7.6% increase in listed homes for sale with the new supply only rising to 60% of in local markets - the rebound tapering off in some parts of the country. This means the demand for homes is more than the supply of the listed homes - clearly getting the market into a seller's market. The ratio of sales to new listings is 73.9% since the highest levels back in 2001-2002.
The Greater Toronto Area was up 49.5% in gains, clearly dominating the national increase. The neighborhood home price levels and trends accurate tool called Aggregate Composite MLS Home Price Index (MLS HPI) shows it was up 7.4% compared July last year - the largest gain since late 2017. It rose to 2.3% in July 2020, which is the second-largest jump recorded since 15 years back (after March 2017).
Realtors also have noticed that the population has been more motivated to find a home of their own - gaining new importance. The July 2020 trend is good news for second-time home buyers taking advantage of the rise in the listing prices with low-interest rates to move up. This can mean bad news to first time home buyers who have to deal with the rise listing pricing and tighter lending restrictions to purchase their first homes. However, come this Fall 2020 - there might be an anticipated shift from a seller's market into a buyer's market as an increase of new listings will populate the market due to homeowners listing their properties if they decide to sell or downsize.
The limited access and physical distancing measures implemented had made home an important haven to host even more added functions: work from home, online learning, entertainment, gym, dining in or food delivery, closer necessities like groceries and recreational centers.
Buying or selling home decisions would less likely be influenced by commute time to work, nearby schools, shopping centers, recreational facilities, and restaurant options as the new normal has paved the way to platforms to grant access to work, school, and fun activities for the family.
With fewer decision pointers, home sellers and buyers will most likely rejoin the real estate market and keep it busy for the whole summer of 2020. So selling your home might be a good deal right now to seriously consider.
Consult with a realtor professional with +30 years of realtor industry experience, JoAnn Visaretis can definitely help you in selling your home or helping you procure a new abode in the current market today.