Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our DECEMBER 2020 Toronto real estate market report.
The Toronto real estate market of 2020 has been a study in contradictions. In the midst of a serious pandemic, all but three months (April thru June) showed double-digit increased sales from 2019.
So… let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
Big numbers came in once again for December as we’re now ending the year with record sales of 7,180 sales of houses and condos across the GTA. The next closest to this was way back in 2009 when we had 5,541 sales). Low interest rates and high demand are continuing to boost our local market.
Sales were up 63% from December 2019.
Condo townhouse and high-rise suite sales were up by 79% year-over-year with a 39.6% share of the market and 2,845 units being sold. Although not a record, December 2020 sales were the 2nd highest ever with more condo suites being sold making the difference.
The December average sale price for all GTA homes came in at $932,222… a big 11.3% increase compared to one year ago.
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving. The inventory average for the month of December compared to historical numbers was higher by 6.6% (mainly condo suites) compared to last year at this time.
Compare that slight inventory increase to a 63% year-over-year sales increase. That’s why we’re seeing such a big jump in appreciation.
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in. 24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
With our busy market… the December ratio increased dramatically to 91% to maintain a very busy seller’s market.
The days-on-market average for GTA / Toronto homes increased by 5 days to 24 days.
2020 ended with a total of 95,151 resale house and condominiums being sold.
This is above the average for the past 12 years, but several thousand below the high numbers from 2015 (101,214) and 2016 (113,040).
Despite all odds, Toronto’s real estate market continued its record of positive year-over-year appreciation.
From the chart above you can see that over the past 5 years, prices have risen by 8.7% annually on average. Over the past 25 years, that appreciation number is a healthy 6.5%.
Imagine you’d purchased a home back in 2009. That home now would be worth approximately 135% more than when you bought it and you’d have already paid down a good chunk of the mortgage principal.
All of this shows that investing in your own home, or an investment condo, is an excellent way to build equity for the future!
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