Toronto’s real estate market has been witnessing steady growth over the last few months after a prolonged slump throughout 2019. The city’s home buying population has adjusted to the impact of the mortgage stress test and other regulatory measures and demand has shot up due to economic growth, stable employment levels and availability of a higher number of properties across segments. Property prices have started skyrocketing in Toronto on the back of sizably growing demand and comparatively lower supply levels.
The condominium market in Toronto has been hot enough for a prolonged period of time and the same phenomenon has been observed for February, 2020, as well as per reports released by TRREB (Toronto Regional Real Estate Board).
Mapping key trends in the Toronto condo market
Prices for condominiums in Toronto have gone up by a handsome 18% to stand at $722, 675 and by 19.3% in the suburbs to touch $534, 688 on a year on year basis. Double digit growth is usually seen in case of condominiums at the rate of approximately 10%. Growth near to 20% indicates record low thresholds seen in February, 2019 and also that February 2020 saw a record number of buyers hitting the market. Throughout markets mapped by TRREB, condo prices went up by 18.6% to touch $666, 358 as the average selling price. This has topped the price of a detached home unit in smaller Ontario urban centers.
The priciest units for purchase are located in downtown Toronto in the condominium segment. The average selling prices for February, 2020 stand at $805,982. With 845 condo units sold in the month, this is the most in-demand and active region for condo sales transactions. Toronto East and West are also hugely popular with condo buyers along with zones like Vaughan, Markham and Mississauga. Detached homes in Toronto witnessed a surge in prices in February 2020 while single-family housing units increased by 14.4% to stand at $1, 485, 304 in the 416 zone in February 2020 as compared to February last year.
Prices also jumped up by 13.7% to stand at $1, 113, 918 in the suburban zones. This indicates an unusual gain in prices with detached home prices having stayed somewhat sluggish over two years. Gains have usually ranged between -1% to 3% previously. Average prices for all types of properties throughout the TRREB region went up by 16.7% to touch $910, 290 on a year on year basis. This is the highest annual growth figure witnessed since peak levels touched in the year 2016 and early in the year 2017. Lower supply levels are majorly responsible for the hike in prices with buyers competing for fewer listings in the region. New listings went up moderately but this was not enough to match soaring demand. New listings increased by approximately 7.6% to stand at 10, 613 property units while sales volumes went up by a whopping 45.6%. This makes Toronto’s housing market firmly tilted in favor of sellers.