2019 GTA Real Estate Wrap Up. The year in review and what to expect in 2020.
2019 In Review
Toronto market continues to tighten.
According to most pundits and our own experience in the Toronto Real Estate Market, 2019 “real estate markets across Canada” demonstrated resilience and stability after a disappointing 2018. However, in the Toronto market we saw an intensification of the already existing conditions; some good and some challenging. In Toronto we saw year over year increase in sales of 14.2% in 2019. But, the troubling trend of fewer existing and new listings year over year (according to TREB Nov 2019 stats) increased as well.
Here are the stats…
As Toronto market conditions continue to tighten, house prices continue to increase. Rather than paraphrase the data experts, here is the direct quote from TREB:
As market conditions continued to tighten in November 2019, with increased sales up against an increasingly constrained supply of listings, the annual rate of price growth continued to accelerate. The MLS® Home Price Index Composite Benchmark increased by 6.8 per cent year-over-year. The average selling price increased by 7.1 per cent year-over-year to $843,637. Both the MLS® HPI and the average selling price for the TREB market area as a whole experienced the strongest annual rates of price growth for the year in November.
“Strong population growth in the GTA coupled with declining negotiated mortgage rates resulted in sales accounting for a greater share of listings in November and throughout the second half of 2019. Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase further if we see no relief on the listings supply front,” said Jason Mercer, TREB’s Chief Market Analyst.
For more details watch this video:
What’s it all mean?
So, in short, if you’re wondering about what to expect in 2020, expect more of the same. If you’re a buyer, there will continue to be a shortage of properties to consider and affordability for most, especially first time buyers, will continue to be a challenge. If you are a seller, depending on the market price range your property occupies, expect higher valuation and potential competition for your property.
Of course, in every market there are exceptions so it’s always best to consult professionals who are experienced and steeped in the many facets of the Toronto Real Estate market- everyday.
We’re those professionals.