January 2020 – Market Analysis
January 2020 Review
Comparing January 2020 to January 2019, we have seen the number of sold properties on the Toronto Regional Real Estate Board (TRREB) increase by 15.4%. TRREB also reported that the MLS HPI Composite Benchmark Price* in the GTA (includes all 416 and 905) increased by 8.7% in January 2020 compared to January 2019. This is the highest annual rate of growth for this Benchmark since October 2017. The constrained supply of available housing options is predicted to continue impacting price acceleration throughout the year. Compared to January 2019, the start of this year shows an impressive upward climb of 12.3% with regards to the average selling price. Please refer to the below graphic for a more detailed breakdown of average selling price and changing number of transactions across all different product types in the 905 and 416 regions.
What We Can Expect in 2020
It is predicted to be a bright year ahead for the GTA Real Estate market. TRREB reports that this year’s housing market will be characterized by strong population growth, a vigorous demand for housing, robust regional economic conditions and low borrowing costs. Together, these key ingredients will support a strong increase in home sales with rising price growth throughout 2020, which we have already seen this past January.
Is Now a Good Time To Act?
Given the predictions of continued price acceleration and increasing competition between Buyers in 2020 – which is largely due to an increasing demand versus the flat-to-down supply – the start of this new year is a favourable time to list your property and enter the real estate market. The MLS condominium apartment market continues to be a driving force behind price growth. It should also be noted, TRREB forecasts that the average selling price of $819,319 in 2019 will increase to $900,000 in 2020 for all home types which is an increase of 10%. Low-rise, detached homes in particular are expected to see an upward climb in price growth. We are happy to see the trends of late 2019 continuing into 2020, with regards to an increasing availability of different product types over and above the ongoing strong condominium market, in both the 416 and 905 regions. From a purchasers perspective, if you’ve been considering entering the market it may be advantageous to do so prior to the above-mentioned predicted price escalations settling in further.
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. We look forward to a fruitful year and continue to appreciate your ongoing reliance of Avenue Realty Inc., Brokerage as your trusted real estate experts in the GTA.
January 2020 – Market Analysis
Monthly Percentage Change in Number of Units Sold – January 2020 – Illustration A
Month-Over-Month Average Price Percentage Change – January 2020 – Illustration B
Seasonally Adjusted Month-Over-Month Average Price Percentage Change – January 2020 – Illustration C
Monthly Percentage Change in Average Sale Price – January 2020 – Illustration D