Ontario Real Estate Market Update: October 2020
The Ontario real estate market remains strong, undaunted by the colder weather moving in and the ongoing pandemic.
Though many regions saw a slight easing in the accelerated sales and price growth coming out of the summer months, October figures broke numerous year-over-year records. Sales were consistently high across the major markets, with year-over-year growth ranging from 18-49% – the only exception being the City of Toronto, where sales increased a still-impressive 7%. The Ontario Real Estate Association (OREA) reports1 that across the province 24,807 units were sold, representing a 27% increase over October 2019 and a new record for the month.
Strong sales indicate that homes of all types are in high demand and markets remain tight. While new residential listings grew by 22% year over year to a record-breaking 33,563, “overall supply is currently hovering at the lowest levels on record,” according to OREA. Months of inventory indicates how many months it would take to sell all available listings at the current rate of sales. In October, there were 1.3 months of inventory, down from 2.1 months in October 2019 and below the historical average of 3 months for this time of year.
The average residential sale price across the province hit a record high for October at $742,101, rising 17% compared to October 2019. Year-over-year price growth across the major markets ranged from 11-32%, largely driven by ongoing supply shortages and consistently high buyer demand. Markets such as these herald good news for sellers!
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The Toronto Regional Real Estate Board (TRREB) reports2 3,514 residential sales in the City of Toronto for October, up 7% from the same month last year and down 1% since September. The average days on market for all home types rose by one day since September to 17 days (down 11% year over year), with many sellers receiving asking price or higher. “The economic recovery in some sectors coupled with low borrowing costs has kept home purchases top-of-mind for many GTA residents,” says TRREB’s Chief Market Analyst Jason Mercer. “With this being said, we have not accounted for all of the pent-up demand that resulted from the spring downturn. Expect record or near-record home sales for the remainder of 2020.” The average selling price for all types of homes in the City of Toronto is $1,025,925, an increase of 11% year over year and 0.4% month over month.3 Detached homes totalled 1,228 sales at an average price of $1,470,857, semi-detached homes saw 416 sales at an average price of $1,154,087, townhouses came in at 125 sales at an average price of $1,068,860, and condo apartments accounted for 1,438 sales at an average price of $668,161.
The Toronto Regional Real Estate Board (TRREB) reports4 2,198 residential sales in the Peel region in October, representing an increase of 30% year over year and a decrease of 7% month over month. Detached homes accounted for 49% of sales. Average days on market for all home types held steady since last month at only 15 days, though that number dropped by 29% from October 2019. Inventory levels are also unchanged since September at 1.3 months, meaning it would take only that long to sell all available listings at the current rate of sales. Brampton accounted for 50% of total October residential sales. The average selling price for a home in any category in the Peel region is $897,749, for a year-over-year increase of 14% and a month-over-month decrease of 1%. Detached homes are selling for an average of $1,119,028, an increase of 11% year over year.5
The Ottawa Real Estate Board (OREB) reports6 continued growth in sales activity, with 2,146 residential properties sold – this represents a year-over-year increase of 34% and a month-over-month decrease of 8%. Of those sales, 1,665 were residential-class homes (including detached homes, semi-detached homes, townhouses, and duplexes) for an increase of 38% year over year, while 481 sales were condominium-class for a growth of 22% in the same period. “While the October average price gains, number of sales, and new listings coming onto the market were all down from September, demand persists, and the number of sellers choosing to enter the market remains strong,” observes OREB President Deb Burgoyne. October saw 1,937 residential-class and 708 condo-class listings enter the market, for respective year-over-year increases of 48% and 70%. The average selling price for residential-class properties grew by 25% over last year to $603,253, while the average selling price for condominium-class properties grew by 16% to $368,936.
The Toronto Regional Real Estate Board (TRREB) reports7 the Halton region is continuing to see strong sales activity. There were 1,117 homes sold in October, representing a year-over-year increase of 49%, of which 55% were for detached, single-family homes. New listings rose 28% year over year to 1,408, with 54% in the detached category. Inventory for all home types is currently at only 1.4 months (meaning it would take under two months to sell all available listings at the current rate of sale). The average days on market dropped from 18 in September to 17, down significantly from 25 in October 2019. The average selling price for all home types in Halton is $1,057,155 – a year-over-year increase of 19% and a month-over-month decrease of 3%. The average price for a detached home in Halton Region is $1,336,796, up 22% over October 2019 and down 2% compared to September.8
The REALTORS® Association of Hamilton-Burlington (RAHB) reports9 1,615 sales across the region which represents an increase of 24% year over year, despite a decrease of 8% month over month. The average selling price for all residential properties is $721,523, representing almost no change month over month, but growing by 20% year over year. “The trends this fall are not reminiscent of what we would normally see – with October activity slowing slightly compared to September – and this is due to 2020 not being a typical year,” notes RAHB President Kathy Della-Nebbia. “As a result of COVID-19, we experienced a delayed spring market and a surge in record activity over the summer months when the province began to reopen. As a result of this unstable year, active listings at the end of each month are some of the lowest we’ve seen, exacerbating low inventory levels and continuing to drive average price.”
The Hamilton region comprises an array of cities, which results in varying home prices. In Niagara North, the average selling price for all residential property types is $693,722, with less than half-a-percent growth month-over-month and a 10% increase year over year. In Haldimand County, the average selling price is $529,440, a month-over-month increase of 10% and a year-over-year increase of 29%. In Burlington, the average selling price is $892,183, a month-over-month decrease of 2% and a year-over-year increase of 14%. In Hamilton, the average selling price for a home is $662,511, representing almost no month-over-month change and a year-over-year increase of 21%.10
The Niagara Association of REALTORS® (NAR) reports11 another strong month of sales. There were 883 homes sold across all home types in the region, representing a 40% increase over October 2019 and a slight dip of 3% since September. St. Catharines saw the majority of buyer activity at 248 sales, with Niagara Falls coming in second at 192, followed by Welland with 126. “It's evident the Niagara Region remains at the top of the list for home buyers,” says Terri McCallum, NAR President “Looking year over year, the number of new listings is down only 1.2%; however, the number of sales are up 39.5%, moving the [benchmark price] up 18% and the average days on market down 36.2%. Clearly this is the place to be!” There were 1,065 new listings for the region in October, with the average days on market coming in at 28, down three days since last month and down 15 days year over year. The benchmark price for a home in the Niagara region (based on an ‘average’ home with three bedrooms and two bathrooms) is $498,900, for a year-over-year increase of 18% and a steady month-over-month increase of 2%.
October 2020 saw the most sales ever recorded for the month, according to the latest Kitchener-Waterloo Association of REALTORS® (KWAR) report.12 There were 691 residential homes sold, for a year-over-year increase of 28%. “We’re continuing to see more buyers than sellers, including additional buyers migrating here from out of the region looking for the quality of life this region offers,” says Colleen Koehler, President of KWAR. She goes on to note that while the MLS® system doesn’t track where buyers are coming from, “I can say unequivocally we are seeing strong demand from GTA buyers. What people want and need in a home, and where they want to be located, has been redefined in a very short period. Waterloo region is, quite rightly, a highly desirable place to own a home.” With such high buyer demand, inventory remains low at one month’s supply. Sales are outpacing the 783 new listings added to the market this month, with the average time to sell at 13 days – down from 14 days in September and 23 days last October. The average selling price for all residential properties is $635,301, showing a year-over-year growth of 19%. The average price for a detached home is $742,596, a year-over-year increase of 22%; the average price for a condo is $395,627, a year-over-year increase of 15%; and the average price for a semi-detached home is $539,434, a year-over-year increase of 17%.
The London and St. Thomas Association of REALTORS® (LSTAR) reports13 a record-breaking 917 homes sold across the region, representing a 12% increase over October 2019. “The combination between the historically low interest rates and the 'working-from-home' trend has generated an extraordinary demand in a housing market with a very limited supply, which pushed the average home prices to record highs across the region," noted LSTAR President Blair Campbell. The median days on market is eight, dropping one day from September. Though new listings are up 3% at 1,042, inventory is holding steady at just under a month (meaning it would take less than one month to sell all available listings at the current rate of sales). The average selling price for a home in the London region grew 28% year over year to $526,848, edging up 1% compared to September of this year.14
The Windsor-Essex County Association of REALTORS® reports15 that 720 homes were sold in October, representing an 18% increase from the same month last year. New listings are down 3% year over year with 823 homes coming onto the market, making the sales-to-new-listings ratio of 87% even higher than the national average of 74%.16 The average sale price for all residential listings is $428,276, up 25% year over year and down just 1% month over month, with 60% of all transactions occurring in the $300,000-$549,999 price range.
The Brantford Regional Real Estate Association (BRREA) reports17 295 residential properties sold in October, representing a 32% year-over-year increase and a new record for the month of October. With a 15% decrease in new listings from October 2019 and an 11% decrease since September, year-over-year inventory has fallen by 65%. This lack of inventory coupled with buyer demand results in average selling prices increasing year over year. The average price for all home types is $577,319, up 22% year over year and up 9% month over month, while the average price for a detached home is $618,508, up 24% compared to October 2019.
The Barrie & District Association of REALTORS® Inc. (BDAR) reports18 strong sales for the month of October, with 971 homes sold in Barrie and the surrounding Simcoe County, up 31% from October 2019. “The sustained increase in sales activity has not been accompanied by a proportional increase in new supply coming onto the market,” says Robin Jones, BDAR President. “As has been the case in the past few months, the market balance remains very tight and price levels continue to reach new highs.”19
Simcoe County comprises several diverse cities and towns with varying price levels, most of which did not see price changes above 10% since September. In Barrie, there were 318 homes sold with an average price of $598,460 (up 5% month over month); in Collingwood, there were 85 homes sold with an average price of $685,267 (up 2% month over month); in Orillia, there were 72 homes sold with an average price of $471,213 (down 6% month over month); and in Wasaga Beach, there were 81 homes sold with an average price of $628,403 (down less than half a percent month over month). The largest month-over-month price gains were seen in New Tecumseth, where 16 sales at an average price of $810,893 represented a 34% growth, and Tay, where 24 sales at an average price of $626,867 represented a 49% growth.20 The overall average price for the region is $649,793, up 3% from September 2020 and an impressive 26% from October of last year.21
The REALTORS® Association of Grey Bruce Owen Sound (RAGBOS) reports22 that the region saw a record-breaking 385 sales in the month of October, representing a 31% increase over October 2019. According to RAGBOS, overall supply “remains at record lows,” with 341 new listings added to the market (down 2.6% on a year-over-year basis) and inventory coming in at only 1.2 months – far below the long-run seasonal average of 6.1 months (meaning it would take 1.2 months to sell all available homes at the current rate of sale). The average days on market is 22, down from 27 days in September and 34 days last October.23 Sales of single detached homes fell by 20% year over year at 211 units,24 while the median price in that category grew by 37% year over year to $513,900. The average price of all homes sold was $523,638 for a notable gain of 32% from October 2019, with homes selling at an average of 99% of listing price.25
The Huron Perth Association of REALTORS® (HPAR) reports26 a record 231 residential sales for the month of October, representing a 33% year-over-year increase. While the 228 new listings added to the market also hit a record high for the month (up 5% year over year), there were only 10 more new listings than last October. Inventory sits at 0.9 months (meaning it would take less than a month to sell all available homes at the current rate of sale), and available homes, or “active listings,” totalled 214 at month’s end – a significant 48% decrease from October last year. “Although new listings were up compared to this time last year, the story of our local market continues to be the higher than expected demand combined with extremely low overall inventory,” notes Sherrie Roulston, HPAR President. “These twin factors continue to contribute to upward price pressures, driving the average prices to some of the highest levels in history.” The average sale price for all home types is $478,674, rising 14% year over year and 4% since September.
If you need to sell or buy a home, a local Purplebricks REALTOR® can help you navigate the market safely and with professional insight. Purplebricks supports Canadians by providing full-service real estate experiences with incredible rewards: 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 more.
1. CREA: OREA October 2020 Market Update
2. TRREB October 2020 Market Report
3. TRREB October 2019 Market Report & TRREB September 2020 Market Report
4. TRREB October 2020 Market Report
5. TRREB October 2019 Market Report & TRREB September 2020 Market Report
6. OREB October 2020 Market Report
7. TRREB October 2020 Market Report
8. TRREB October 2019 Market Report & TRREB September 2020 Market Report
9. RAHB October 2020 Market Report
10. RAHB September 2020 Market Report
11. NAR October 2020 Market Report
12. KWAR October 2020 Market Report
13. LSTAR October 2020 Market Report & LSTAR October 2020 Market Update
14. LSTAR September 2020 Market Report
15. WECAR October 2020 Market Report
16. CREA: October 2020 National Statistics
17. BRREA October 2020 Market Report
18. BDAR October 2020 Market Report
19. CREA: BDAR October 2020 Market Report
20. BDAR October 2020 Market Snapshots
21. BDAR September 2020 Market Report
22. RAGBOS October 2020 Market Report
23. RAGBOS October 2020 Residential Market Activity Report
24. RAGBOS October 2020 Housing Market by Property Type Infographic
25. RAGBOS October 2020 Residential Market Activity Report
26. CREA: HPAR October 2020 Market Report