Warm, professional service with care.
Who would have guessed? Year 2020 brought a lockdown which wiped out the Spring market, took open houses off the table and forced a mass of mature agents to go 100% paperless. Then we hit the gas from July through December and broke the sales record every month, resulting in the biggest December on record and the 3rd best year in sales history!
Toronto’s real estate market ended 2020 with a bang, as a December home-buying spree helped to push the average selling price to a record high of $929,699. After a steep drop in the spring due to the pandemic, the market took off in the second half of the year. The 13.5% increase over 2019’s average was led by single family homes where limited supply pushed prices up. The (905) areas outside Toronto saw the most pronounced price and sales gains. The number of homes sold in 2020 in the Greater Toronto Area totaled 95,151, up from 87,751 in 2019, and the 3rd-best year on record.
In contrast, condo listings far outstripped growth in sales. The choice for condo buyers led to more bargaining power and a dip in the average sale price during the last few months of the year. For the City of Toronto, the average sale price in December was $625,828, down 4.7% from last years average of $656,233. What we are starting to find is that, with condo prices softening a little bit (they are down about 10% in the downtown core for the year) there’s way more selection, far fewer bidding wars and interest rates as low as 1%. This has excited investors.
Sean Hildebrand from Urbanation thinks the soaring prices of single-family homes will also push more buyers back to the condo market. As of November, the average price gap between condos and detached houses was $596,000. The gap between a condo and a semi-detached or townhome was about $217,000. Both of those were at their 2nd-highest levels since the market peaked in late 2016 to early 2017, he said. “This could really start to swing demand towards condos in the second half of the year,” said Hildebrand.
Looking to the new year, 2021 prices are still competitive from 2020, and one thing the forecasts seem to agree on, is that whatever happens in the next few years, the long-term outlook for Canada’s housing markets is bright.
Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.