Toronto Real Estate Prices Wildly Rise As Supply Radically Slumps
Toronto, which is Canada’s largest housing market continued to have less available housing inventory in the first month of 2020, causing what appears to be another double-digit jump in home prices..
Once again the proof is in the TREB statistics. Total active listings for the GTA dropped over 35% year-over-year in January, while same month sales climbed 15% as 4,500 properties traded hands.
This increase in sales activity combined with fewer homes on the market resulted in the average selling price rising 12.3% to approx. $840,000. Demand for detached homes was stronger than a last year as sales were up 23.3% year-over-year in January, while their average selling price in the GTA rose 10.5% to $1.04 million.
It seems pretty clear that buyers most of which who were on the sidelines due to the stress test are now moving back into the market, thus driving very strong year-over-year sales growth in the detached segment.
Price growth was even more substantial in the condo market, as the average selling price in that segment climbed 15.1% year-over-year. The Toronto real estate board warned there’s no end in sight to these price gains amid the persistent and ongoing supply crunch. In its 2020 outlook released Thursday, TRREB forecast the overall average selling price will climb to $900,000 this year, which would represent a 10% rise from the $819,319 average for 2019.
The big issue this year is still going to be the shortage of listings. Without relief on the housing supply front, the pace of price growth will again continue to ramp up.