Greater Toronto Realtors reported 4,581 residential sales through the Toronto MLS system in January 2020. The number of transactions in January jumped by 15.4% compared to 3,968 in January 2019. GTA-wide, sales were up on a year-over-year basis for all major home types.
For the region as a whole the detached home type in the GTA experienced the largest sales increase in January at 23.3%.
“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. Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices. Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments,” said TREB’s President Michael Collins.
The number of new listings reported in January 2020 was down by 17.1% compared to January 2019. The number of active listings reported in January 2020 was down by 35.0% compared to January 2019. Both statistics support MUCH tighter market conditions across all home types.
The average price in January was up by 12.3% from the same time last year to $839,363. Condo apartments in the GTA led the way in terms of an average price increase at 15.1% compared to the same time last year.
“A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses. A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the OFSI stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment. Strong sales up against a constrained supply continues to result in an accelerating rate of price growth,” said Jason Mercer, TREB’s Chief Market Analyst.
Sales of Toronto (416 area code) condominium apartments increased by 9.7% in Janaury 2020. The average price of a 416 condo apartment increased by 15.0% in January 2020 from the same time last year to $679,182.
Condominium apartments accounted for 29.1% of total GTA sales in January while detached homes accounted for 45.3% of the total sales.
Other notable statistics include the average days on the market in the GTA for January at 27 days, down from 33 days a year earlier. The sales-to-listings ratio for January 2020 was 58.9% which is classified as a seller’s market. A ratio from 24%-28% is considered a balanced market.
Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property's market value range
Real estate is very neighbourhood specific, building specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.
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