January 6, 2021 | Buying

Aside from an unprecedented year as a result of the COVID-19 outbreak, including necessary public health constraints and ambiguity surrounding Toronto’s economy, 2020 proved to be the third-best result on record for the GTA recording over 95,000 home sales. The average selling price reached a new all-time-high of almost $930,000.

The year 2020 led the Greater Toronto Area on an unfamiliar path within an uncharted territory. Following the severe COVID-induced halt in demand within our market in the spring, home sales spiked back to record levels throughout the summer and fall. A resilient economic rebound took place in many areas of our economy, including low borrowing costs and improved use of technology for virtual open houses and showings. These adjustments fueled and sustained the housing market recovery.

 

Some highlights in our real estate market from 2020 include:

  • 95,151 sales were reported through TRREB’s MLS System which, compared to 2019, was up by 8.4 per cent. This included a record increase of 64.5 per cent for the month of December, with 7.180 sales reported.
  • The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to the numbers we saw in 2019.
  • Year-over-year sales growth was greatest in the GTA regions surrounding Toronto, predominantly for single-family home types.
  • After a prominent dip in market activity between mid-March and the end of May 2020, our market conditions rebounded radically in the second half of the year, with multiple sequential months of record sales and average selling prices.

 

While we saw our real estate market strengthen and recover in 2020, there was, in fact, a contrast between the single-family homes and condominium market areas. We continued to see a relatively limited supply of single-family homes which resulted in strong competition between buyers and double-digit price escalations. However, the growth in condo listings far surpassed the condo market’s growth in sales. Condominium inventory remained at a high and ultimately gave buyers more choice, impacting negotiation power and resulting in limited price growth. These conditions displayed a year-over-year dip in average condo selling prices during the tail end of 2020.

 

There is no doubt that transacting in Real Estate has definitely transformed, however, it is not nearly impossible. We have had the pleasure of servicing a number of our clients during this pandemic resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.