The record pace of home sales in Toronto and the GTA market has continued throughout November, leading to continued record breaking sales numbers in this high octane market. Get the info you need to know before buying or selling in the GTA!
- The Toronto Regional Real Estate Board reported 8,766 home sales in the GTA; an increase of 24.3% over November 2019.
- Year-over-year growth rates for sales were stronger for single-family homes in the GTA regions.
- Average selling price for all home types was up 13.3% year-over-year to $955,615.
- Finally, the MLS® House Price Index (HPI) - which considers the overall value for each property type within specific markets over an extended period of time, not just the ones that are selling - was up by 10.6% compared to November 2019. Read about HPI implications in a previous blog post here.
“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.”
- Lisa Patel, TRREB’s President
Much to the contrary, the condo market in more dense areas like Downtown Toronto continue to exhibit a strong variety of choice and less competition, in stark contrast to Pre-COVID conditions. This is shown as the number of condos on the market was almost double that which was reported in November 2019.
Prices Down? Finally!
In contrast to this time last year, we are in a buyer's market! Buyers can now enjoy a position to negotiate on listing prices and hopefully close on a deal comfortably below asking price as the average condo price in Toronto has actually declined by 3% from November 2019!
Moving forward, we can expect things to continue the same trend we saw Pre-COVID as if this decline never happened (see chart below indicating US Real Estate Recovery after 2008 financial crash which left millions without a home and erased unthinkable amounts of wealth - highly unlike the current crisis which is a temporary, government-mandated shut down.) As a by-product of this market resilience, owning a home as the economy progresses out of the temporary dip brings you the most rapid returns on your investment!
As legislation opens up and both businessses and residents move to take advantage of the lower rent (as seen in increasing commercial lease activity), there will be a new wave of growth spurred on by the persistently low interest rates and reduced overhead expense for local business.
"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 return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets." - Jason Mercer, TRREB Chief Market Analyst.
Is now the time to buy? It might depend on what your desired areas and budget are. Is now the time to sell? YES. Think you’re ready to start looking? Download our Ultimate Guide to Buying your Dream Home here and check out our home search function below!
What should you do if you’re thinking about buying or selling? Consider the above information and give Zubin, Mansoor or Karl a call. Market conditions are changing quickly, but we have you covered. Let us make a plan that works for you based on price, location and timelines. We know our market and we’re here to help.
Reach Out Today! We have you covered.
Email us at firstname.lastname@example.org
Zubin Abuwalla | Direct: 416-389-8019
Mansoor Ahmed | Direct: 647-297-1721
Karl Abuwalla | Direct: 647-883-0874