Despite A Tumultuous Year, Records Are Still Breaking
The results are in for 2020! Despite the disruption of the global pandemic, causing public health measures and economic uncertainty, Greater Toronto Area REALTORS reported over 95,151 home sales for the year (the third-best result on record). This included yet another record amount of sales in December 2020, which saw a year-over-year increase of 64.5 percent, thanks to 7,180 sales.
“The Greater Toronto Area housing market followed an unfamiliar path in 2020. Following the steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels throughout the summer and fall. A strong economic rebound in many sectors of the economy, ultra-low borrowing costs and the enhanced use of technology for virtual open houses and showings fuelled and sustained the housing market recovery,” said Lisa Patel, Toronto Regional Real Estate Board (TRREB) President.
Other 2020 highlights include strong year-over-year sales growth in the GTA regions surrounding the city and the second half of the year’s astonishing, record-breaking bounce back.
As we collectively work our way back to recovery, the next 12 months are critical. TRREB will return next month with key market reports, as well as a “forecast for home sales and selling prices, the latest Ipsos consumer polling on the GTA housing market and new research related to innovative ways to bring on more housing supply,” according to TRREB CEO John DiMichele.
The Condominium Market – A Year In Review
Despite 12 months of uncertainty, the housing market ended the year with another record-breaking batch of home sales. Greater Toronto Area REALTORS reported 7,180 sales for December 2020, a staggering year-over-year increase of 64.5 percent. This factored into a record-busting 95,151 sales for the entire year.
Home sales came out fighting, boosted by economic rebound, ultra-low borrowing costs and the use of virtual open houses. The average selling price reached a record high of $929,699 for the year and increased by 11.2 percent in December compared to the same period last year. But how did the Condo market fare in 2020?
“While the housing market as a whole recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment. The supply of single-family homes remained constrained resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average condo selling prices during the last few months of the year,” said Jason Mercer, TRREB Chief Market Analyst.
With recovery on the horizon, the impact of resumption in immigration and the re-opening of the economy will be critical factors in the economy’s overall health. In the housing sector, hot button issues like housing supply and tight market conditions will need addressing from policy makers and industry leaders alike.