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Toronto, one of Canada's largest housing market, started the year on fire as homes sales continued to soar in January. Home sales increased by 52.4%, doubled compared to previous year. These sales are mostly led by condo market activity as well as the increasing demand for detached homes. The average selling price of homes is steadily high at $1,008,947 but will likely slow down once the supply in the market becomes abundant.
Possible factors that might have contributed to this increasing trend are the low mortgage rates and the implementation of the vaccine. A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the [Office of the Superintendent of Financial Institutions] stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment, said Jason Mercer, TRREB's director of market analysis, in a release.
Let us take a look now at the numbers presented by TRREB in their latest January 2021 statistical update for GTA.
Source: TRREB February 8, 2021
Year-over-year Total Residential Transactions
January 2020 - 4,546
January 2021 - 6,928
There is an outstanding increase of 52.4% in sales compared to last year. The same increase was recorded in January 2021 sales result over December 2020.
December 2020 - 11,281
January 2021- 11,506
There is an increase of 2% in sales compared the previous month.
The number of home sales in January 2021 increased by a high record of 52.4% on a year-over-year basis, and an increase of 2% from last month.
The average selling price of homes continues to rise steadily.
January 2020 - $ 838,087
January 2021 - $ 967,885
There is a 15.5% increase in selling price compared to last year.
The increase is significant if we compare the average selling price in the previous month.
December 2020 - $ 975,050
January 2021 – $ 1,008,947
There is an increase of 3.5% in selling price compared the previous month.
Total New Listings added to the Market
January 2020 - 7,848
January 2021 - 9,430
The number of new listings leaped to 20.2% increase in a year-over-year basis.
The January 2021 % Sales-to-New Listings Ratio of 73% increased by 15% compared to 58% of December last year.
Condominium Sales Statistics
Year-over-year Total Condo Apartment Sales
Q3/19 - 6,398
There is a significant increase of 10.5% in condo sales compared the previous year. Additionally, the average selling price for condos is still growing steadily
Q3/19 - $ 584,746
Q3/20- $ 633,484
There is an increase of 8.3% compared the previous year.
Here is the summary of the listings of condominiums
Year-over-year Total New Listings
Q3/19 - 9,542
There is a massive increase of 84.6% compared the previous year.
From January 17 to February 14, there are a total of 578 sales in townhouses, an increase of 58% compared to last year. There are 504 new listings, up by 92% from last year. For the average selling price, a 1 Bd Townhouse can cost up to $546,000 which is 4% higher compared to the same month of last year. On the other hand, a 2 Bd Townhouse cost $860,000 which is a decrease of 1% compared to the previous year.
As a summary, the Toronto real estate market proves ever strong as the COVID-19 did not stop it from having a great start this year. The limited supply of homes in the market resulted to a big increase in the average selling price. Still, there is a huge demand from buyers possibly because of low mortgage rates and the implementation of the vaccine.
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