Toronto Housing Market Update January 2020

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Toronto Real Estate Market
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Toronto Home Prices Increased 16.2%! Detached House Prices Increased Almost 20%! All You Need To Know About The Market! Read more below:

Read all you need to know about Toronto’s housing market at the beginning of January 2020. Read it First here! + Predictions and Supporting Data of Our Past Predictions!

 

General Toronto Housing Market Analysis:

We started 2020 while Toronto real estate agents closed Toronto’s real estate market with a total of 4,399 resale transactions. That being said is a 17.4% increase in the number of sales compared to last year. That’s a HUGE increase in home sales in Toronto. However the more interesting news is yet to come ( read below this article).

To better understand the intensity of the number of sales in Toronto, compare it with new home listings that came to TOronto’s real estate market in the same month, which declined -18.1%. That means way more pressure on the home sales in Toronto and huge price appreciations across Toronto in 2020.

If you read our predictions in the past few months, we’ve predicted this before ( example this article )  and advised the home Buyers in Toronto to use the help of a Top Toronto Real Estate Agent to secure the perfect homes before it’s too late!

We started 2020 with a total active listings of 7,406 which is drastically down about -35.2% from last year’s 11,431. Active listings, is another indicator to keep an eye on. That being said, the level of inventory decreased Drastically to 1.68 Months of Inventory in all property classes in Toronto’s real estate market. This is the LOWEST since April 2017.

PREDICTIONS: We continue to predict that the pressure on the current and new inventory in 2020 could make could result in a double digit price increase in some of the property classes Both Freeholds and Condos. (for more predictions and analysis read below the articles)

Toronto average home price december 2019

Average home prices in Toronto had an increase of 16.2% to $885,132:

Toronto home price december 2019

Toronto Condo Market ( condos up Over 10%):

 

Toronto’s Condo Real Estate Agents did 884 condo apartment sales in the past month through TREB. Number of sales increased approximately 5% compared to last year. Active condo apartment listings for sale on the other hand declined to 1,148 which is a drop over 24% from 1,502, same time last year. Decline in the number of active listings and also the increase in the number of sales would put a lot more pressure on the current condo market.

Predictions: We predict a slightly smoother level of appreciation for condo apartments in Toronto for 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. In the first half of 2020 we expect new inventory come to the condo market and keep it a bit under control compared to freehold properties such as Detached homes in Toronto.

The Average condo apartment price in Toronto’s $656,233, which is over 10% increase in prices, YoY!

Toronto Condo Apartment Average Price

Toronto’s Detached Houses (Toronto houses up 20% and sales up 38% ):

“Detached houses are on the rise again”that’s what we predicted in 2019 for 2020 Detached houses market in Toronto. If you are a buyer, keep in mind that you need to be more educated when entering Detached homes market! Ask a top Toronto real estate agent to help you with that matter and or to educate you!

Toronto’s real estate agents sold 465 houses through TREB. The average price of a house in Toronto’s $1,363,357. This is almost 20% increase in Detached Home prices ( As we predicted in 2019). The number of sales were up 38%! As we were predicting in 2019, house buyers should expect a huge hike in Toronto’s Detached Home Average prices in 2020 and way more competition when it gets to offers and purchases.

Inventory level  in Toronto’s housing market for Detached houses shrunk to 1.97 Month of inventory. The inventory level defines a seller’s market in Toronto’s real estate.

 

Buyers and sellers read below this article for more comments on these matters.

Average Detached home price toronto toronto detached home price

Semi-detached and Townhouses:

Toronto’s housing market were highly competitive in Townhouses and Semi-Detached homes as well! The average price of a Townhouse in Toronto has been $717,369 and average price of a semi-detached house has been $1,004,477!

 

Comments and Predictions for sellers, January 2020:

Each micro market in Toronto might have different behaviour from over all Toronto’s Real Estate Market. 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. For more information you can talk to your real estate agent or if you don’t have any, find your Top Toronto real estate agent here.

In general, Toronto’s sellers, especially in Freehold properties would could have the upper hand in 2020 if they adopt the right marketing strategy when they decide to sell ( 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) We foresee the market to be more favourable to the sellers in Q1 and Q2 2020, as the levels of inventory were dropping in the last few months of 2019 and we started 2020 with lower levels of inventory.

Freeholds Detached Houses in Toronto would be in higher demands in 2020, but if you are a condo home owner, there is news that new units will be ready to occupy in Q1 and Q2 2020. For more info talk to a real estate agent, or contact us.

 

Comments and forecasts for buyers, January 2020:

Buyers are going to face a very competitive real estate market in Toronto in 2020. Healthy and relatively low interest rate which causes to less expensive borrowing costs combined with higher demand and less inventory, can cause more multiple offer situations and more pressure on Toronto’s Real Estate Market.

As a buyer in 2020, you need to have your winning strategies in place. Get educated about your target market through a great real estate agent. You can find all you need to know to get educated about the market here in this link. 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 don’t know what that means you can talk to a Toronto Real Estate Agent to take you through the dos and don’ts). If you are looking at houses, have an inspector or a top Toronto REALTOR next to you.

We continue to predict a high 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 can give you a better idea of when’s the best time to buy in Toronto.

 

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