Tight Market Conditions and Record Residential Sales
The results are in, and the record pace of home sales shows no signs of slowing down! According to the Toronto Regional Real Estate Board’s (TRREB) MLS System, 8,766 sales were reported In the Greater Toronto Area in November. This is a stunning 24.3 percent increase on sales for the same period in 2019.
According to TRREB President Lisa Patel, this is because “Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth.”
The MLS HPI Composite Benchmark was up by 10.6 percent this November compared to November last year, while the combined average selling price for all home types clocked in at $955,615, a 13.3 percent year-over-year increase. Market conditions continued to tighten in the detached, semi-detached and townhouse markets, resulting in double-digit, year-over-year increases.
Once we collectively move into post-COVID territory, population growth will resume, adding extra strain on those already tight market conditions.
While the outlook for 2021 is still as uncertain as the times we live in, it will be interesting to see how policy makers will respond to growing demand in both the ownership and rental markets.
The Condominium Market Bounces Back
Following a bumper third quarter, November’s sales reached the same record-breaking levels. The Toronto Regional Real Estate Board’s (TRREB) latest Market Report tallied 8,766 residential sales for the month, a remarkable 23.4 percent year-over-year increase.
The demand placed more pressure on the tight market conditions in single-family market segments in the GTA, resulting in double-digit year-over-year increases in the average selling prices for the detached, semi-detached and townhouse markets. But how did the condominium market factor in?
In contrast to the other housing types, the condominium apartment market offered buyers much more choice compared to last year, particularly in the City of Toronto. The number of new condo listings clocked in at almost double the listings of November 2019, and with more choice came a small 2 percent year-over-year decline on the average condominium apartment selling price, which was recorded at $605,863.
“The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year,” said TRREB Chief Analyst Jason Mercer. However, he also pointed out that this may be somewhat of a short-term phenomenon. “Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets.”
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