August residential real estate sales went through the roof.

News 100 yellowBy Staff

September 11th, 2020

BURLINGTON, ON

 

The data and the insights are courtesy of the Rocca Team – a leading Burlington real estate company.

During the month of August, we saw sale prices rise over 20% as compared to August 2019. Remarkably, sales were also up, over 39% and of course days on market were down, by just over 43%. During the month of August 2020, almost ⅔’s of the sales were for the asking price or more. Considerably more!

Just under 20 properties sold for more than 10% over the asking price. Inventory levels remain very low but only because demand is so strong. In August 2016, one of the strongest August’s on record, we saw 131 sales as compared to 219 in August 2020 – that’s a 67% increase!

At the end of August 2016 we had fewer active listings – 163 as compared to 185 in 2020 or, a 13% increase. In short, we would need at least 50% more active listings then we had at the end of August to be on even footing with one of the strongest fall markets ever experienced in the Burlington market!.

What Does This Mean?
August has historically been the second-slowest month of the year, second only to December but in 2020, it turned out to be more like our May – felt more like a spring market than a dead heat summer market. Things have not changed much since July – still extremely overheated in all of our trading areas and no end in sight.

The Federal government continues to support those that have been adversely affected by the pandemic – renters – both commercial and residential, mortgagees, by allowing deferrals and by providing a continuous income stream to individuals that have lost their jobs. Once all of this assistance comes to an end we are certain there will be an impact on the housing market. We do not, however, believe it will be significant enough to erode property values significantly. We expect that the market will cool in late fall or early 2021 but we don’t expect it to freeze!

Rocca Burlington residential

Condominium market
Sale prices in August slipped slightly, by 2.5% as compared to August 2019. The more important number, however, is price per square foot and in August of 2020 it was $540.00, up just over 7% from August 2019.

Sales were up in August, by 25% and days on market were down by 25% to 24 as compared to August 2019. Inventory levels at the end of August suggested a tight market, favouring the seller but demand was definitely nowhere nearly as strong as we saw in the freehold market.

During the month of August 2020, condo apartments sold for 99.87% of the asking price, on average.

Rocca condo - August

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