Market Update for December 2020
Despite an unprecedented year due to COVID-19, including necessary public health restrictions and uncertainty surrounding the economy, Greater Toronto Area REALTORS® reported over 95,000 home sales in 2020 – the third-best result on record.
The Greater Toronto Area housing market followed an unfamiliar path in 2020. Following the steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels throughout the summer and fall. A strong economic rebound in many sectors of the economy, ultra-low borrowing costs and the enhanced use of technology for virtual open houses and showings fuelled and sustained the housing market recovery.
"Total residential transactions"
95,151 sales were reported through TRREB’s MLS® System – up by 8.4 per cent compared to 2019. This included a record result for the month of December, with 7,180 sales – a year-over-year increase of 64.5 per cent.
Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $932,222 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA.
The average selling price reached a new record of almost $930,000.
While the housing market as a whole recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment. The supply of single-family homes remained constrained resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average condo selling prices during the last few months of the year.
"Sales To New Listings Ratio"
Sales to new listings ratio in Dec 2020 is 82% which is down by 1% compared to Dec 2019. (sales to new listings ratio for Dec 2019 was 81%)
What does 82% sales to new listings ratio mean? This means every 10 homes that are listed into market, almost 8 of them are being sold.
"MOI & DOM & Average SP/LP"
Above table shows; Semi-detached and town homes are fast selling property in the market.
* 416 means city of Toronto
** 905 means GTA excluding Toronto
In all GTA average price for all type of homes except Toronto condo apartment were higher than the same time last year!
Below is year over view of 2020 in different house segments.
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