Kitchen Table Real Estate:
With COVID-19 restrictions being lifted across Canada, home buyers and sellers have been very active!
National home sales and new listings have continued to increase since June, with July seeing more home sales across Canada than any other month in history (Based on Canadian Real Estate Association’s 40 years database).
Across Canada: Home sales in July 2020 were 30.5% higher with 62,530 Home sold compare to 47,920 in July 2019.
New Listings were up 10.3% with 84,790 new listings compare to 76,870 in July 2019.
Average price of homes sold was $571,470, a jump 14.3% compared to $500,160 in July 2019. (The national average price is heavily influenced by sales in the Vancouver and Toronto Areas, two of Canada’s most active and expensive housing markets. Excluding these two markets from calculations, Average national price of homes sold would be around $454,000).
As encouraging as the increased activity may be, it’s possible that we may be seeing a rush of activity held back by the previous COVID-19 restrictions. The snap back in activity that would have otherwise happened earlier this year is a big part of the market right now. There are some new factors at play as well. There are listings that will come to the market because of COVID-19, but many properties are also not being listed right now due to the virus. The number of properties for sale are currently at a 16-year low and competition between buyers and low supply is pushing prices higher.
Some purchases will no doubt be delayed, but the new-found importance of home, a desire for more personal space, room for a home office, etc. will certainly also spur activity that otherwise would not have happened in a non-COVID-19 world.
It’s been theorized that mortgage deferrals were a big part of low housing inventory over the summer. With mortgages being deferred, out of work Canadians can afford not to sell their homes. In the fall, when the deferrals expire, more inventory is expected to come on the market, which could cause housing prices to move back.
Now more importantly than ever, Realtors remain the best source for information and guidance when negotiating the sale or purchase of a home. If you are thinking of selling, now is an outstanding moment. Before you decide to sell your house, ask your Realtor for a free home evaluation. You might be surprised to find out how much your home would sell for in today’s market.
Be safe. Be well. Be happy.