Since the Toronto real estate market is now operating less predictably as we weather The Season Of COVID-19, we'll have to wait and see if the approaching holidays appear to have their traditional tranquilizing effect on real estate. But don't expect the housing market to hibernate completely this December and January, as ultra low mortgage rates (some banks as low as 1.85% for a five-year term) are keeping buyers interested, if less proactive. For the short term, the winter will provide some good entry positions, particularly in the relatively soft condo market (there is plenty of choice out there right now!), while those seeking a detached or semi-detached family home may choose to wait until the Spring Market. After all, forecasters predict the economy will greatly improve next year, now that COVID-19 vaccines are expected be available within the next 4-6 months.
Here's the Toronto Real Estate Board's analysis for November 2020, with graphics courtesy of Market Watch:
TORONTO, ONTARIO, DECEMBER 3, 2020 - The record pace of home sales in the fall continued with 8,766 sales reported in November by Greater Toronto Area REALTORS® through the Toronto Regional Real Estate Board’s (TRREB) MLS® System. This result was up by 24.3 per cent compared to November of last year.
Generally speaking, year-over-year growth in sales was stronger for single-family homes in the GTA regions surrounding the City of Toronto, but annual single-family growth rates remained robust in the ‘416’ area code as well. “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,” said Lisa Patel, TRREB President.
The MLS® HPI Composite Benchmark was up by 10.6 per cent in November 2020 compared to November 2019. The average selling price for all home types combined was up by 13.3 per cent to $955,615.
Market conditions tightened in many single-family market segments in November, resulting in double digit year-over-year increases in average selling prices for detached houses, semi-detached houses and townhouses.
In contrast to the single-family market segments, buyers continued to benefit from much more choice in the condominium apartment market compared to last year, particularly in the City of Toronto. The number of new condominium apartment listings in November was almost double that reported in November of last year. More options in the condo apartment market translated into a small year-overyear decline in the average condominium apartment selling price in the ‘416’ area code.
“The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, 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,” said Jason Mercer, TRREB Chief Market Analyst.
“The real estate market and broader economy in the GTA certainly experienced an unprecedented year in 2020. As we move toward 2021, we’re obviously thinking about what the next year will bring. In this regard, TRREB will once again be releasing its Market Year in Review and Outlook Report in early February. The report will include a housing market outlook for 2021, up-to-date consumer polling results on buying and selling intentions, and new research on housing supply in the GTA,” said John DiMichele, TRREB CEO.
Love a good infographic as much as we do? Here's one from our broker - Bosley Real Estate Ltd., Brokerage - based on the November 2020 TRREB stats for the City Of Toronto!
If you'd like to see more in-depth figures - by housing type and/or geographical area - here's the complete set of November 2020 TRREB Stats.
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