After the pandemic-induced depression in real estate during April and May, County real estate recovered strongly in June, moving close to bubble territory.
Demand Doubled
From May to June home sales exploded, with double the number sold in June as during the month before and up significantly from the same time last year.
Supply Limited
On the supply side, the number of active listings remained significantly below last year.
Balance Favoured Sellers
Months of inventory is an indicator of the balance of supply and demand which measures how long the pool of current listings would last at the current rate of sales. During June, the months of inventory fell to just over 4 months, a level not seen since the real estate bubble of 2016-17. The market strongly favoured sellers during June.
Average Price Up
The average price for homes sold in June was $600,000, up 21% from June 2019. By comparison, average house prices increased by 14% per year during the period 2015-19.
Discussion
As Ontario began to re-open, County real estate made a strong recovery in June. With demand outstripping supply to a significant degree, the market strongly favoured sellers. Whether the June level of demand is sustained will depend on Covid-19 being kept in check while making a quick economic recovery.
You can now hear Broker of Record Treat Hull and Grapevine host Lynn Pickering discuss the recovery in County real estate and the implications for buyers as heard on 99.3 County FM on July 13th via podcast.
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