Sales and Prices Are Up, But Supply Is Still Low
The Toronto Real Estate Board (TREB) has released its sales figures for December 2019, as well as the past year’s total sales. TREB’s MLS System recorded 4,399 residential sales during December, a festive year-over-year increase of 17.4 percent. The total sales for the calendar year beat the 2018 decade low, rising to a 12.5 percent increase with 87,825 reported sales.
The recovering sales activity in 2019 can be attributed to a stronger regional economy, declining mortgage contract rates and subsequent buyer confidence, according to TREB president Michael Collins, who cited a sales boost particularly in the latter half of the year, after homebuyers “moved back into the market place starting in the spring.”
From summer 2019 onwards, the annual growth rate in the MLS Home Price Index Composite Benchmark accelerated, recording an average selling price of $819,319, a four percent increase compared to 2018’s average of $787,856. December’s average selling price came to $837,788, a 12 percent year-over-year increase.
2019 also recorded a continuing trend of substantial sales increase vs. decline in supply, owing to continued tight market conditions. Sales may be up for the year, but the number of new listings was only up 2.4 percent in comparison.
“Expect further acceleration in 2020 if there is no relief on the supply front,” said Jason Mercer, TREB’s Chief Market Analyst, an integral part of TREB’s campaign to draw attention to the GTA’s housing supply issue.
The Toronto Real Estate Board’s (TREB) latest report highlights positive sales growth in December and 2019 as a whole.
4,399 residential sales were recorded on TREB’s MLS System for December, marking a 17.4 percent year-over-year increase. This coincided with 87,825 reported sales for the calendar year, a 12.5 percent increase on 2018’s takings. But how did the condo market fare?
Both sales and prices continued to grow for all home types, with condominiums continuing to be a popular choice amongst buyers while retaining the lowest price point.
1,255 condo sales were recorded in December 2019, a 6.9% increase on the same period last year, while the average price for a condo grew to $612,464, a 10.4% year-over-year increase.
This increase contrasts a decline in supply across all home types, following continued tight market conditions and accelerated price growth. Over the last decade, “TREB has been drawing attention to the housing supply issue in the GTA. Increasingly, policymakers, research groups of varying scope, and other interested parties have acknowledged that the lack of a diverse supply of ownership and rental housing continues to hamper housing affordability in the GTA,” says TREB’s Chief Market Analyst Jason Mercer.
Mercer foresees further acceleration in 2020 if there is no relief on the supply front, so it is becoming increasingly important that the supply crisis is tackled at the government level to ensure sustainable price pacing and rent growth.
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