2020 STARTS OFF WITH A BANG FOR THE TORONTO HOUSING MARKET
Feb 6, 2020 - Greater Toronto Area REALTORS® reported 4,581 home sales through TRREB’s MLS® System in January 2020 – up by 15.4 per cent compared to January 2019. It’s looking more and more like early-2016 all over again.
Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices. A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses. A year seems to have made a big difference and demand for detached homes was markedly stronger than a year earlier, as sales in that category in in the City of Toronto surged 20.8 % year-over-year in January, while their average selling price in the rose 16.7 % to almost $1.37 million and 8.7% to $957,287 in the suburbs. There are very few places across the GTA where it’s still possible to buy a single-family home for under $1 million without extensive renovations being needed. Bargain hunters should head to Durham Region and Simcoe County.
Price growth was also substantial in the condo market, as the average selling price in that segment in the City of Toronto climbed 15% year-over-year. The key issue in 2020 will be the persistent shortage of listings. It is clear that many buyers who were on the sidelines due to the OSFI stress test are moving back into the market, driving very strong year-over-year sales growth in the detached and condo segment. Strong sales up against a constrained supply continues to result in an accelerating rate of price growth.