The torrid pace of home sales in the Greater Toronto Area continued last month, upsurging by 50% over January 2020, according to new data from the Toronto Regional Real Estate Board (TRREB).
The data indicated that all major housing segments, including condominium apartments, saw notable year-over-year increases in sales, totalling 6,928 for the month. Market conditions also tightened with new listings increasing on an annual basis, albeit not by the same annual sales rate, which pushed up the average selling price 15.5% to $967,885, driven largely by low-rise sales.
Although the mean price of a Toronto condo declined, that could very well change if condo sales continue outpacing listings, which TRREB estimates could occur sometime this year.
The 522 detached home sales in the City of Toronto last month averaged $1,581,400, while 162 semi-detached sales had a mean price of $1,204,857. The 416 area recorded 1,703 condo sales in January, which averaged $624,886.
In the 905, 2,244 detached homes changed hands in January for a mean price of $1,308,393 in the 905, while the 865 semi-detached transactions averaged $898,810. Condo sales in the 905, totalling 768, averaged $547,488.
“The pandemic certainly resulted in an unprecedented year for real estate in 2020, but it hasn’t put a damper on the overall demand,” Jason Mercer, TRREB’s chief market analyst, said in a statement. “Looking ahead, a strengthening economy and renewed GTA population growth following widespread vaccinations will support the continued demand for both ownership and rental housing. But over the long run, the supply of listings will remain an issue, particularly in low-rise segments.”
Average selling price to eclipse $1 million in 2021
TRREB expects the housing market to remain strong in 2021, predicting there will be 105,000 home sales reported through the MLS for the GTA, South Simcoe County and Orangeville, provided Canada’s economic recovery continues. All of these factors should conspire to bring the average home type in all regions covered to $1,025,000, a 10% increase from 2020.
Quoting Mortgage Professionals Canada, TRREB says there will not be a spike in mortgage delinquencies this year, and that most homeowners who took advantage of mortgage deferrals early in the pandemic did so out of caution rather than necessity.
