GTA home sales are expected to increase this year, and have already done so over the past month, according to the latest report by the Toronto Regional Real Estate Board (TRREB).
Board President Michael Collins released TRREB’s fifth annual Market Year in Review and Outlook Report.
In it, the board said that “strong demand drivers should see home sales crest the 90,000 mark in 2020, with a point forecast of 97,000 – up by almost 10.5% compared to 87,825 sales reported in 2019.”
According to TRREB, the growth will be driven by low-rise markets, such as semi-detached houses and townhouses, along with the condo market. This is due to the fact that these homes are more affordable, on average.
To start the year, January saw a 15.4% jump in home sales compared to last January.
“We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings,” said Collins.
“Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices. Steady population growth, low unemployment, and low borrowing costs continued to underpin substantial competition between buyers in all major market segments.”
The composite benchmark price was up by almost 9% compared to last year, which TRREB said is the highest annual rate of growth for the Benchmark since October 2017.
The average home price in Toronto is now $884,385, and $815,129 in the rest of the GTA.
The condo market led price growth in the region, and selling prices were up by 12.3% in Toronto.
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The average price for a condo in Toronto is now $679,182, which is comparatively high when looking at the 905 region’s average price of $521,878.
As TRREB looks into this year’s forecast for selling prices, it appears to be much higher than the average condo price.
“The point forecast for the overall average selling price in 2020 is $900,000, close to a 10% increase compared to the average of $819,319 reported for 2019. This forecast rate of growth presupposes that price growth will continue to be driven by the less expensive mid-density low-rise home types and condominium apartments,” reads its report.
“If the pace of detached home price growth starts to catch up to that of other major home types, the average selling price for all home types combined could push well past the $900,000 mark over the next year.”