December 2019 residential sales reported through TREB’s MLS® System by Greater Toronto Area REALTORS® were up by 17.4% year-over-year to 4,399.
The average selling price in December 2019 was $837,788 – up almost 12% year-over-year. Detached homes actually recorded higher price gains, up 11.6% in the month to $1.05 million as sales were up 26.2% from a year earlier. The average condo price was up 10.4% to $612,464, while sales were up 6.9%.
Sales Up While New Listing Supply Remains Low Pushing Prices higher
In December 2019, Toronto real estate sales saw an increase of 17.4% year-over-year. The year started quite weak but by the spring many Toronto homebuyers returned from the sidelines leading to a recovery in sales activity. A strong economy and declining contract mortgage rates over 2019 helped increase buyer confidence.
While sales were up in 2019, the number of new listing was down by 2.4% year-over-year.
Expect Further Price Growth in 2020
TREB’s Chief Market Analyst urges buyers to expect further price acceleration in 2020 if there is no relief on the supply front. And we agree!
According to RBC Economics report the Toronto census metropolitan (CMA) needs 22,000 NEW rental apartments and rented condominium apartments per year to satisfy demand between 2019 and 2023.
The higher completions of new condominiums scheduled for 2020 will be more than offset by the expected population growth of 140,000 in the Toronto CMA this year.
It is predicted to be a really strong spring market for Toronto real estate. Major pre-construction condo projects are starting to launch as early as middle of January!
