Market Watch - December 2020
It was a record for December home resales and a new record in 2020 average selling price! The economic rebound of many of the sectors in the economy, extremely low borrowing costs and enhanced use of technology for virtual open houses and showings fueled and sustained the housing market recovery through the pandemic. Looking back through at 2020, the COVID-19 pandemic resulted in a drop-off in demand during the Spring, however, bounced back to record levels in the summer and fall. The average selling price in December reached a new record of almost $930,000.
Key highlights from 2020:
95,151 sales were reported through TRREB’s MLS System (including results for the month of December) – up by 8.4 per cent compared to 2019.
The month of December reported 7,180 sales – a year-over-year increase of 64.5 per cent
Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $932,222 in December – a year-over-year increase of 11.2 per cent.
After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.
Although the housing market generally recovered well in 2020, there was a huge contrast between the single-family and the condominium market segments. More choice for buyers due to increased supply of condominium listings resulted in more bargaining power for purchasers and a year-over-year dip in the average selling prices of condos during the last few months of the year. Conversely, the supply of single-family homes remained constrained, resulting in strong competition between buyers and an increase in prices.
TRREB MLS Sales & Average Price by Major Home Type (December 1 – 31, 2020)
The next 12 months will be important to observe as we work through recovery. It will be important to see the impact that the resumption in immigration and re-opening of the economy will have on the market. With the province currently in Lockdown, we continue to follow Public Health guidelines and Ontario Real Estate Association direction as it relates to real estate transactions. In line with these directions, we continue with our implemented Sell Safe and Buy Safe Action-Plans and use of digital technologies to perform contactless transactions to maintain the health and safety of our clients and others.
Whether you are looking to buy or sell, please do not hesitate to contact us any time for advice, discuss strategy, goals and objectives. We are more than happy to help answer any questions.
It’s our family helping yours!
-Kristina & Rey