Average home prices in the GTA are expected to hit a record high this year, according to a new report from the Toronto Regional Real Estate Board (TRREB).
TREBB’s Market Year in Review & Outlook 2021 Report, released on Monday, predicts that the average selling price for all home types in all regions of the GTA — which includes Toronto, Peel, Halton, York, Dufferin, Durham, and Simcoe — will surpass the $1,000,000 mark for the first time ever and go on to reach $1,025,000.
This will be a year-over-year increase of 10%.
TRREB Chief Market Analyst Jason Mercer attributes this anticipated substantial growth to a continuation of ongoing economic recovery as well as near-record lows for interest rates on loans.
“The pandemic certainly resulted in an unprecedented year for real estate in 2020, but it hasn’t put a damper on the overall demand,” Mercer said. “Looking ahead, a strengthening economy and renewed GTA population growth following widespread vaccinations will support the continued demand for both ownership and rental housing.”
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In the first month of this year, sales in the GTA already saw substantial growth. January home sales totalled 6,928, which is a more than 50% increase from January 2020. According to the report, this increase was seen across all property types.
With January’s increase in sales also came an increase in prices, which went up by 15.5% overall compared to last year. This raised the average GTA home sale price to $967,885 for the month.
Although 2020 was a tough year financially for many, the TRREB report shows that in the second half of the year, there were consecutive monthly records for both the number of home sales and average selling prices.
“The end result was the third-best annual sales total on record and a new record for the average selling price,” the report reads.
Suburban areas, in particular, experienced the strongest growth last year, with the average selling price of single-family homes reaching just shy of $930,000.
With that growth continuing into 2021, hopeful GTA home buyers will have to brace themselves for even higher prices.