Toronto Real Estate in 2019
Happy New Year! We hope you had an enjoyable holiday season. If buying or selling real estate is at the top of your New Year’s resolutions, this is a great place to start.
Looking back at 2019, the market exhibited a solid recovery following its decade-low 78,015 sales total in 2018. With 87,825 residential sales reported through the Toronto Real Estate Board’s MLS system, 2019 sales were in line with the median annual sales from the past decade, and represent a 12.6% increase over the previous year.
The average selling price for 2019 was $819,319, up 4% year-over-year. In the City of Toronto, the average price of $883,520 was a 5.8% increase over 2018. Though prices were up for all major housing types, price growth continues to be led by the condo sector which saw its average sales price grow by 6.4% year-over-year. Real inflation in the condo sector, as measured by the MLS Home Price Index (HPI), was +9.48% for the past 12 months. This was followed by townhouses at +7.71%, semi-detached homes at +6.71%, and single detached homes at +5.86%.
With rising prices in the condo sector, buyers showed greater interest in ground-level housing options. In 2019, condo sales represented just 26.8% of total sales, down from 29.5% in 2018. Most of those sales went to detached houses which accounted for 45.9% of sales, up from 43.3% a year earlier.
Toronto Real Estate Market in 2020
Moving into 2020, the big story continues to be the lack of housing supply. As of December, new listings were down 18.1% year-over-year. There is currently less than 1.7 months of inventory, the lowest levels since April 2017. With reduced choice in the market and increased buyer demand, fuelled by lower interest rates, a strong regional economy, and a growing population, you can expect to see upward pressure on prices as seller’s market conditions continue well into the new year.