Market Conditions Heat Up in Early 2020
It’s a new year, and in the spirit of renewal, the Toronto Real Estate Board (TREB) has unveiled a brand new name and logo, chosen to reflect its regional reach and support network. Now operating under the name Toronto Regional Real Estate Board (TRREB), the organization released its sales report for January 2020 and figures show a marked increase in sales as well as sales prices on a year-over-year basis.
TRREB’s MLS System recorded 4581 residential sales, a 15.4 percent increase on the same period last year and a 4.8 percent increase compared to December 2019. Recording the highest annual rate of growth since October 2017, the MLS HPI Composite Benchmark price reflected an 8.7 percent year-over-year increase compared to January 2019, while the average selling price was up by 12.3 percent, driven by the detached housing and condominium markets.
“We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings,” revealed TRREB President Michael Collins, who points towards continued tight market conditions, i.e. consistent population growth, low unemployment and low borrowing costs, as the reason behind the increase in average selling prices.
With no relief on the supply front, the pressure is mounting on the government to face the supply crisis and push through policy to ensure a sustainable environment for buyers in 2020.
Condos Show Continued Sales and Price Growth
Moving into a new year, the Greater Toronto Area shows a strong increase in sales across all major housing types. According to the Toronto Regional Real Estate Board’s (TRREB) MLS System, 4,581 residential sales were recorded for January 2020, indicating a 15.4 percent year-over-year increase on the same period last year. But how did the Condo market factor?
Remaining the second most popular choice behind Detached Houses for buyers in a tight market, TRREB reports a total of 1,335 condominium sales for the first month of the year, a steady 8.3% increase on last January’s sales. This positive growth in sales is balanced out by strong price growth.
Compared to January 2019, the MLS HPI Composite Benchmark price grew by 8.7 percent (the highest annual rate of growth since October 2017), and condominiums lead the way in terms of price growth. The average price of a condo hit $630,047, a 15.1 percent year-over-year increase. The average selling price in January was up by 12.3 percent.
“Strong sales up against a constrained supply continues to result in an accelerating rate of price growth,” reports TRREB’s Director of Market Analysis and Service Channels Jason Mercer.
Bolstered by consistent population growth, low unemployment and low borrowing costs, steady price growth means competition between buyers is still heating up across all major market segments. If supply continues to stagnate, expect to see condo prices, and prices across the board, continue to rise.