Breaking Toronto Home Sales Increased 14.2% Year Over Year! Condo Apartments stealing the show with 10.9% Price Increase in Toronto!
Read all you need to know about Toronto’s housing market at the beginning of December 2019. Read it First here!
General Toronto Housing Market Analysis:
Past month Toronto real estate agents did 7,090 sales through the TREB’s MLS in terms of resale homes sold. Which is a 14.2% increase in terms of sales if you compare the homes sold the same time last year. To imagine the intensity of that number, I would like to compare the increase in sales with the decrease in the new listings coming to the market which was -17.9%. That will put more pressure on the current level of inventory.
Active listings of 11,958, which is down a whopping -27.2% from last year’s 16,420 active listings, is another indicator to have an eye on. That being said, the level of inventory decreased to 1.7 Month of Inventory in all property classes. That’s an important number since we are gonna start 2020 Market soon. This level of inventory is the LOWEST since April 2017.
IMPORTANT: I predict that the pressure on the current and new inventory in 2020 could make next year’s market a competitive market and might result in another 2 digit price increase in some of the property classes (especially freehold properties). If you are interested to know how to navigate through this market, talk to your real estate agent.
Holding the rates from bank of Canada was another big news yesterday. Thus we’ll continue to see a steady mortgage and borrowing market. Healthy for both borrowers and lenders.
Average home prices in Toronto ( 416 locale), was $910,419 , which is 8.3% price increase year over year:
Toronto Condo Market:
Toronto’s Condo Real Estate Agents did 1,365 home sales last month through TREB. Number of sales were steady compared to last year, however the number of active listings dropped. The standing inventory was 1,629, which was declined compared to last year’s 1,932. This again puts a slightly more pressure on the current inventory.
In the bigger picture there is a different story that would happen to Toronto’s condo market in the Q1 and Q2 of 2020. If you are looking to sell or buy a condo as an investment you must be informed about the new levels of inventory that would affect the current balance between the current supply and demand.
A condo apartment’s average price in Toronto was 659,855 which is almost 11% higher than the same time last year.
Toronto’s Detached Houses:
Detached houses are on the rise again. Mark my word, in 2020, if you haven’t bought a freehold yet and you are considering purchasing a house, I suggest to review what comes next. You might want to act before it’s too late.
Toronto’s house real estate agents sold 788 houses through TREB, with average price of $1,360,246. The number of sales were up 12.7%, yet the standing inventory shrank from 2,000 to 1,618, which is another push to the current inventory. Thus house buyers should expect a hike in prices and more competition.
Level of inventory in Toronto’s housing market for Detached houses were 2.1 Month of inventory, which is a seller’s market.
Buyers and sellers read below this article for more comments on these matters.
Semi-detached and Townhouses:
Toronto’s housing market in these two property classes been very competitive too! The average price of a Townhouse in Toronto has been $763,298 and average price of a semi-detached house has been $1,067,027!
Toronto real estate agents sold 247 semi-detached houses and 294 Townhouses through TREB.
Comments and forecasts for sellers, November 2019:
Toronto’s housing market in general might have different behaviour from the micro markets scattered across the city. This analysis is a complete general market update for the city of Toronto resale residential homes, but you still need to look at the stats in your own micro pocket.
In general, Toronto’s sellers, especially in Freehold properties would generally have the upper hand ( depending on the property and marketing strategy).
So if you need to sell and cash out, the next few months could be good months to market your property. ( depending on your specific micro market and asset type though) I foresee the market to be more favourable to the sellers in the Q1 and Q2 2020, as the levels of inventory were dropping in the past few months.
Freeholds would be in higher demands, but if you are a condo home owner, there are news that new units will be ready to occupy in Q1 and Q2 2020. For more info talk to a real estate agent.
Comments and forecasts for buyers, November 2019:
For buyers in Toronto’s housing market, the story would be a bit different. BoC held the overnight rate on 1.75%. Then steady mortgage rates, could add to the current demand. Higher demand and less inventory, can cause in more multiple offer situations and more pressure.
As a buyer in 2020, you need to have your winning strategy in place. Know your target market. Be prepared for multiple offers proactively, such as having your pre-approvals ready. If you are looking for condos, have a solicitor ready to inspect status certificates for you before preparing an offer. If you are looking at houses, have an inspector next to you.
We predict a higher pressure on freehold properties in 2020, so if you are looking to purchase a house, detached or Townhouse, you should consider that and buy before it’s too late. In case you’re wondering what’s the best time to buy a home in Toronto you can view this link. This article would give you a better idea of when’s the best time to buy in Toronto.