February 7, 2020 | Buying
The new decade has picked up right where 2019 left us. Home sales in January 2020 were up by 15.4 per cent compared to those of January 2019. Taking seasonal adjustment into account, sales were up by 4.8 per cent compared to December 2019 sales numbers.
The number of sales competing with the dip in the number of new and available listings resulted in strengthened price growth. Toronto’s real estate market conditions remain tight compared to the conditions the city’s market saw a year ago. Low unemployment, population growth and low borrowing costs continued to reinforce significant competition between home Buyers.
The MLS HPI Composite Benchmark price spiked the highest annual rate of growth that we’ve seen since October 2017- the Benchmark price was up 8.7 per cent compared to January 2019. The condominium market segment maintained the lead in terms of MLS HPI price growth, but the rest of the home types were not far behind with price growth up 7 per cent. Condominium and detached market segments in the City of Toronto drove the average selling price up by 12.3 per cent.
The important difference to note when comparing January 2020 to January 2019, was in the low rise-market segments, predominantly with regard to detached housing. What a difference a year can make in the real estate market. Many Buyers have moved off the sidelines and back into play within Toronto’s market as the OSFI stress test eases up its pressure. Buyer resumed activity and demand while up against a constrained supply has resulted in strengthened year-over-year price acceleration.
Is 2020 your year to make a move within Toronto’s real estate market? Let us help guide you and find you the perfect property that suits your needs. Contact us today, we’d love to help!