Toronto will almost certainly maintain its seller’s market status this year after the bull run of 2019, characterized by significant price increases.
In its forecast, RE/MAX stated that Toronto’s average residential sale price will grow by as much as 6% in 2020
Market vigour will be propelled by amplified demand in the city’s detached housing segment, itself already labouring under conditions of extremely tight inventory. At present, Toronto has approximately two months of housing stock.
More confident move-up buyers, improved employment rates, sustained economic growth, and overall better affordability in the Greater Toronto Area will also impel activity, RE/MAX noted.
“The Toronto housing market sat in seller’s territory in 2019, and this trend is expected to continue next year. The rate of new construction in the city is too low to meet the increasing demands of Toronto’s quickly growing population, which continues to put pressure on the market,” RE/MAX explained.
Additional data from the Toronto Real Estate Board indicated that the city’s housing performance in 2020 will benefit from the generous momentum built up over the past year – especially in December, which saw average home price growth of 12% annually, reaching $837,788.
Throughout 2019, there were a total of 87,825 home sales in Toronto, which was 12.6% greater than the 10-year low (78,015 sales) in 2018. December accounted for 4,399 sales (and 17.4% year-over-year growth) to the overall 2019 volume.
“Much of last year’s gains happened in the second half of 2019, with boosted buyer confidence thanks to decreasing mortgage rates and a stronger local economy,” Point2 Homes stated in its analysis of the TREB figures.
“The low-rise housing market experienced one of the most significant recoveries last year, particularly in 905-area communities around Toronto that hadn’t recovered as quickly as the city did after the 2018/early 2019 market correction.”