The 2020 Toronto Housing Market: A Snapshot
Real estate sales started off strong in 2020, until COVID arrived in mid-March. When this happened, and Ontario shut down, there was an historic low in market activity. The market was quick to rebound in the second half of the year. In 2020, 95,151 sales were reported through TRREB’s MLS® System, an increase of 8.4 per cent year over year. New listings were up only by 2.6 per cent year over year. The disconnect between new listings and sales accelerated the growth of price. The overall average selling price increased by 13.5% from 2019 to $929,699 in 2020.
Even during these difficult COVID times, and the economic uncertainty that accompanies it, the demand for rental units was very strong in the GTA in 2020. That being said, the number of condominium apartments listed for rent at one point in 2020 was double what it was at that point in 2019. This increased supply resulted in better negotiating power for prospective tenants, and – in many cases – lower rents being achieved. Going forward, as economic growth continues to strengthen and population increase based on immigration and non-permanent migration, the Toronto Regional Real Estate Board (TTREB) predicts that demand for rental units in the GTA will remain strong, with the potential of acceleration.
Altus Group also reported a strong year for new home sales. The new home market saw sales grow by 5% to almost 38,000 new homes year over year. The is above the ten-year average and the best year since 2017. The demand was the same across all types of new home builds, including detached, semi-detached and row townhouse units. Townhouse and detached sales both almost doubled from last year’s volumes. These strong sales have eaten away at supply and have resulted in inflating new home prices. As a result, sales growth was strongest in the 905 regions, with more single-family homes sold in York Region in 2020 than in the entire GTA in 2018. Moving forward, single-family new home sales are expected to remain active, but will be impacted by declining inventories and rising prices.
While many things changed due to COVID and the unstable economy, many things stayed the same. The affordability of housing, the reduced housing supply as well as the variety of supply continue to be major factors in the GTA housing market. Going into 2021, demand is stronger than ever. In 2021, total home sales are expected to range between 100,000 and 110,000. We have already seen the overall average selling price for all home types and areas eclipse the $1,000,000 mark for the first time. The following are the Ipsos predictions for 2021:
