October 2020 – housing sales rose by 25% in Toronto and Vancouver

It looks like the postponed spring real estate market has expanded to October, with Toronto and Vancouver showing annual sales increases by 25% and 29%, respectfully.

In addition to it, the strong demand keeps affecting home prices. According to the Toronto Regional Real Estate Board (TRREB), the average price for all home types in Toronto was up by 13.7% to $968,318. Meanwhile, there were certain differences among different housing sectors: detached home prices rose by 14.8% to $1.204 million, and condo prices showed an increase by only 0.7% to $622,122.

The report by the Real Estate Board of Greater Vancouver (REBGV) says the MLS Home Price Index for all home types was up by 6% to $1.045 million in Vancouver.

The similar situation was seen in Greater Montreal, with sales and prices growing significantly last month. According to the Quebec Professional Association of Real Estate Brokers (QPAREB), home prices for single-family houses rose by 37% in Montreal, while condos showed a 16% gain.

“The deal is that home has been the centre of attention for residents during the pandemic. As more hours were spent at home, people started reviewing their housing situation,” – REBGV chair Colette Gerber noted.

However, there’s also one more factor keeping the housing relatively affordable even in spite of the latest prices increases.

“Historically low interest rates have made homeownership more affordable for first-time buyers and changed the calculations for potential move-up buyers,” – Mortgage Professionals Canada chief economist Will Dunning says. “In case of those, who have relatively stable economic situations and expect it to stay that way (and the poll shows that most of us are in this situation), there is a stronger interest in home purchasing today.”