Toronto’s real estate market is one of the hottest right now in the country and with good reason! Toronto has been witnessing a mammoth recovery in terms of burgeoning home sales volumes and demand from both end users and investors. The condominium segment is one of the fastest growing in Canada if you take the entire Greater Toronto Area (GTA) into context while several other pro-active measures have spurred fence-sitters into action as well.
TRREB (Toronto Regional Real Estate Board) has now confirmed that home sales figures have increased by a whopping 45.6% in Toronto for February 2020 on a year on year basis. The interesting thing to note here is that home sales volumes hit a decade-low threshold in February 2019 prior to rebounding strongly in February this year.
Major market trends worth noting
TRREB has confirmed 7, 256 units in home sales for the Toronto region via its MSL system in February, 2020. This is way higher than the 4, 982 units sold in the region for February, 2019. Post initial seasonal adjustments, TRREB has stated that sales volumes have increased in February by 14.8% if the previous month of January, 2020, is taken into consideration. Average prices increased to $910, 290 as compared to $779, 791 witnessed in February, 2019. New listings touched a handsome 10, 613 units for last month, indicating sizable growth from 9, 834 listings witnessed in February, 2019.
TRREB has forecasted 97,000 units in home sales volumes for 2020 which will be a marked increase from 2019’s sales tally of 87, 825 units across the region. The housing market thus witnessed strong growth in prices and sales volumes alike for last month while housing demand kept going up with lower supply levels overall. Average prices in Toronto are inching closer to the $1 million mark on the back of soaring demand as per the TRREB report that was released recently for February, 2020. Sales figures were still comparatively lower than the record volumes witnessed in 2017, year on year sales figures were the strongest in case of homes across the GTA (Greater Toronto Area).
Experts are predicting even stronger sales volumes in 2020 as mentioned earlier although the growth momentum seen last month may not be equally observed in all months. However, sales volumes will be much stronger after a robust first quarter of the calendar year 2020 according to experts. Rates for listed homes was smaller as compared to the rate of sales which also indicates a tightening scenario in the market over the last year. The growth in sales has strongly surpassed listing growth which is positive for the market at the moment. There is still shortage of housing supply and demand is soaring throughout the GTA. With the implementation of the Ontario Fair Housing Plan, there may be more balance achieved in the future.
Other key observations related to the Toronto housing market
Experts have also opined that a lot more needs to be done to shore up supply levels of housing in the GTA (Greater Toronto Area) in order to check prices and maintain the balance between demand and supply. Governments across all levels have recognized the supply issue although the need of the hour currently is to swiftly implement major policies as per experts. Competition in this area has currently gone up between buyers owing to lower supply of housing units.
This has naturally spurred growth in year on year housing prices, a trend clearly observed in February, 2020, when home prices shot up by approximately 10.2%. Average selling prices for all types of homes (cumulatively) increased by a handsome 16.7% and double digit price growth was seen in case of most categories including both condominium apartment units and detached homes. TRREB is forecasting average price growth of close to 10% in 2020 with an ultimate average price of $900,000 for the year across the GTA (Greater Toronto Area). This forecast denotes readily achievable growth although the detached market category may witness some tightening as well. This may lead to the overall average selling price being pushed over the baseline threshold at TRREB. This trend may be seen in case sales growth continues surpassing growth in new listings like it has done till now, as per experts.