Market Update for NOVEMBER 2020
Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth.
In contrast to the single-family market segments, buyers continued to benefit from much more choice in the condominium apartment market compared to last year, particularly in the City of Toronto. The number of new condominium apartment listings in November was almost double that reported in November of last year. More options in the condo apartment market translated into a small year-over-year decline in the average condominium apartment selling price in the ‘416’ area code (city of Toronto).
The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, this may be somewhat of a short-term phenomenon. Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets.
"Total residential transactions"
The record pace of home sales in the fall continued with 8,766 sales reported in November by Greater Toronto Area REALTORS® through the Toronto Regional Real Estate Board’s (TRREB) MLS® System.
This result was up by 24.3 per cent compared to November of last year.
Generally speaking, year-over-year growth in sales was stronger for single-family homes in the GTA regions surrounding the City of Toronto, but annual single-family growth rates remained robust in the ‘416’ area code (city of Toronto) as well.
The MLS® HPI Composite Benchmark was up by 10.6 per cent in November 2020 compared to November 2019. The average selling price for all home types combined was up by 13.3 per cent to $955,615.
Market conditions tightened in many single-family market segments in November, resulting in double-digit year-over-year increases in average selling prices for detached houses, semi-detached houses and townhouses.
There were 11,545 homes listed in November 2020, up by 33.5% year-over-year.
"Sales To New Listings Ratio"
Sales to new listings ratio in Nov 2020 is 76% which is down by 6% compared to Nov 2019. (sales to new listings ratio for Nov 2019 was 82%)
What does 76% 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 condo apartment were higher than the same time last year!
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