Toronto Home Sales are up 15.4%! Average Toronto Home Prices Up 12.3%! All You Need To Know About Toronto’s Real Estate Market, February 2020!
Read a complete report and all you need to know about Toronto’s Real Estate Market: beginning of February 2020! Read it Here First! + Predictions and Supporting Data of Our Past Predictions!
Toronto Housing Market Updates:
February 2020 started by Toronto real estate agents done a total of 4,581 resale transactions in Toronto’s real estate market. That is a 15.4% increase in the number of sales compared to last year similar time in Toronto’s real estate market. On top of that the average home price in Greater Toronto Area (GTA) has been $839,363, to be exact, that means OVER 12% price increase Year over Year in Toronto’s housing market!
To better understand the intensity of this month’s sales in Toronto, compare it with new listings that came to Toronto’s real estate market in the same month last year. The new listings were 7,836 which is a decrease of -17.1% compared to the same time last year. That means way more pressure on the home sales in Toronto and huge price appreciations expected across Toronto in the following months in 2020.
We’d predicted this market before and had encouraged home buyers to use the opportunities as soon as they can grab them. Read our past blogs about Toronto’s real estate market and predictions for 2020 here. We had 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!
Active listings, is another indicator to keep an eye on. We started February 2020 with a total active listings of 7,772 which is drastically down from last year’s 11,962 listing’s in the same month. To put it simply, it’s about -35.% down. That being said, the Month of Inventory (MOI) decreased to 1.69 Months of Inventory in all property classes in Toronto’s real estate market.
PREDICTIONS: We continue to predict that the pressure on the current and new inventory in 2020 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)
Average home prices in Toronto (416 area) had an increase of 13.9% to $884,385:
Toronto’s Hot Condo Market ( Condos up Over 15% YoY):
Toronto’s Condo Real Estate Agents did 918 condo apartment sales in the past month through Toronto Real Estate Board MLS system. Condo apartment sales in Toronto increased approximately 10% compared to last year from 837 to 918 units sold. Active condo apartment listings for sale on the other hand declined to 1,246 which is a drop over 28% from 1,738, same time last year. Thus, same as previous months, we keep continuing predicting the 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. Thus we foresee more price increases and more bidding wars in the months to come.
Predictions and Tips: 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 second half of 2020 we expect new inventory to come to the condo market and keep it a bit under control compared to freehold properties such as Detached homes in Toronto. However the appreciation and pressure will stay on the condos $700,000 and below that.
The Average condo apartment price in Toronto’s $679,182, which is over 15% increase in prices, YoY!
Toronto’s Detached Houses Analysis (Toronto detached house prices are up 17% !) :
If you are a buyer, keep that in mind that you need to be more educated when entering the Detached homes market! Get help from a Top Toronto Real Estate Agent! I believe that the buyers must be educated in order to get the best out of this hot market! Ask your Realtor to give you a thorough Market Analysis before entering the market.
Toronto’s Realtors sold 465 houses through TREB this past month. The average price of a Detached house in Toronto’s $1,369,848. This is almost a 16.7% increase in Detached Home prices. We were predicting it several months ago and I was advising buyers to get into the market asap if they could.
The number of sales also increased by 20.7%! 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. We still see that in the market, so if you’re a buyer, get prepared for that and have your winning strategy in place and get help from a knowledgeable Toronto real estate agent.
Month of inventory is a good indicator that shows the OVERALL supply/demand situation in each area. It has to be studied in your target micro market to give you a better understanding of what you’d be facing. Generally in Toronto’s real estate market, MOI for Detached houses shrunk to 2 Month of Inventory. That inventory level defines a seller’s market in Toronto’s real estate.
Buyers and sellers encouraged to read below this article for more comments on those matters.
Semi-detached and Townhouses:
In Townhouse and Semi-Detached homes market in Toronto we had a competitive market as well. The average price of a Townhouse in Toronto has been $986,706 and average price of a semi-detached house has been $1,004,208! For more detailed info about these sub markets you can contact us if that’s what you’re considering!
Comments and Predictions for home sellers, February 2020:
Each micro market in Toronto might have different behaviour from over all Toronto’s Real Estate Market. Our real estate market report is a complete overall market update for the city of Toronto resale homes. If you wanna know about your specific neighbourhood, 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 a Top Toronto real estate agent in your area.
In general, Toronto’s sellers, especially in Freehold properties would 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 get the maximum for your home, the next few months could be good months to market your property. Especially when you have less competition in the market while other sellers are not in the market yet. We still 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 and Detached Houses in Toronto would be in higher demand in 2020. If you are a condo home owner, there is news that new units will be ready to occupy in Q1 and Q2 2020.
Comments and forecasts for home buyers, February 2020:
Buyers are going to face a very competitive real estate market in Toronto in the next few month in 2020. We see that it will keep getting worse for buyers. So if you need a home to live in, wait no more! Healthy and relatively low interest rate which causes less expensive borrowing costs combined with higher demand and less inventory, can cause more multiple offers on condos 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 Toronto’s real estate in our blog page. Be prepared for competitions proactively. Have 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.