December 2019 – Market Analysis

A Year in Review

Overall we saw a turning of the corner for 2019 from the tumultuous prior two years. Total sales for the calendar year 2019 were 87,825 on the Toronto Real Estate Board (TREB) which is a 12.6 percent increase compared to the number of sales in 2018 (78,015). It is notable that the 2018 number of sales on TREB was a decade low figure. Interesting to note is that while the number of sales in 2019 on TREB increased, the number of new listings was down by 2.4 percent relative to the prior year. The combination of increased number of transactions despite lower supply created an upward pressure on price, especially over the second half of 2019.

December 2019 Review

The most recent monthly statistics from the TREB showed an increase in both the number of sales and average sale price for December 2019 from the same month of the prior year. The number of sales increased by 17.4 percent compared to December 2018 and the average price increased by 11.8 percent compared to December 2018. Over the course of 2018 much of the driving force behind number of sales and price stability was driven by the condo apartment market. Over the course of 2019 we observed a resurgence of the more balanced market with all segments (without focusing on price point) seeing improved numbers. For example, detached homes over December 2019 in the 905 region enjoyed a 23 percent increase in the number of sales and a 7.7 percent increase in average price compared to December 2018. For the 416 region, there was an 36.8 percent increase in the number of sales and a 19.5 percent increase in average price in December 2019 compared to December 2018. Feel free to reference the illustration below for additional breakdowns relative to condo apartments, townhouses and semi-detached properties.

What does the 2020 Real Estate Market Hold Ahead?

While crystal ball predictions are not easy to come by, especially during today’s sensitive economic and political climate, we can review the most recent trends and potential for those to continue into the upcoming 12 months. Driving the back-end of 2019 we saw a strong immigration rate, return of buyers to the market who had retracted due to 2018 mortgage stress test and lowering mortgage rates. Looking at the overall market from a macro and micro perspective one could expect increasing demand from buyers along with steady interest rates. If this is combined with decreasing product availability; upward price pressure can be expected.

The start of a new calendar year is a great time to take stalk of your real estate assets, short term and long term plans and determine how to best utilize your assets to produce a strong return that fits your specific life and real estate objectives. Feel free to review the additional statistics below and connect with us to discuss how we can be of assistance to you on an immediate or long term basis.

December 2019 – Market Analysis

Monthly Percentage Change in Number of Units Sold – December 2019 – Illustration A

Month-Over-Month Average Price Percentage Change – December 2019 – Illustration B

Seasonally Adjusted Month-Over-Month Average Price Percentage Change – December 2019 – Illustration C

Monthly Percentage Change in Average Sale Price – December 2019 – Illustration D




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