Brokers and realtors saw an overall improvement in the housing market this 2019. There was a pickup in the number of home sales and an increase in the annual rate of price growth. Here’s a good read to keep you in the loop on what’s happening in the Toronto real estate market toward the end of the year:
A Review of the 4th Quarter
By the start of the 4th quarter, the supply of listings had continued to decrease to 1.9%. Nevertheless, there were still 7,825 houses for sale sold through the Toronto Real Estate Board’s (TREB) Multiple Listing Service (MLS) system versus 6,414 in 2018. Also, the average selling price of homes stood at $843,115 compared to $796,782 in the previous term. These statistics represent a strong 22% residential sales growth and a 5.8% increase in annual rates.
This trend continued in October with the number of new listings down to 9.6% compared to last year, resulting in tighter housing market conditions and raising the value of real estate. The average selling price of residential units reached the highest point so far this 2019 at $852,142, up by 5.5% versus 2018. Realtors also sold 8,491 homes through TREB’s MLS system, a 14% increase from 2018’s reported sales of 7,448.
In November, the real estate industry experienced a slight downturn across all major segments of the housing market. There’s a 1.8% dip on a year-over-year basis for new listings, but the number of houses put up for sale went down to 8,650 compared to 13,050 in October.
There were also 7,090 homes sold for that period, valued at $843,637 on average. While these statistics mean lower profit for realtors compared to the previous month, these figures are still better than last year. Only 6,206 houses were sold in November 2018 at an average cost of $787,349. That means there was a 14.2% increase in residential sales growth and 7.1% in annual price rates.
Market Outlook for 2020
At the start of next year, there will be stronger price growth in the real estate market if the supply problem isn’t resolved. In fact, Canada’s national housing agency is predicting a 5% increase in the value of residential units in Toronto. Average costs will play anywhere between $765,300 and $898,400.
On the brighter side, the agency also forecasted that the industry will stabilize over the next 2 years. Resale activity and housing prices are expected to fully recover from recent decline, supported by high employment, an influx of immigrants, and a strong local economy. Migration in the region, along with a robust labour market, will likely lower mortgage rates and banking interest rates. This will, in turn, lead to a rise in demand for homes and new listings.
With that said, it’s advisable to source out prospective buyers for your residential units during this period. It’s also a good time to research property investments in Toronto while prices are still gaining a foothold. Condo apartments are a great choice since the rental market is at an all-time low for vacancies. Finding tenants will be easy.
Get in touch with David Merenda with Merenda Real Estate Group for an experienced residential broker. They can help you list your houses for sale in Toronto, or assist you in purchasing your dream home. These professionals know which properties are viable and which ones suit your taste and lifestyle. You’re one call away from finding that perfect agent to lead you through the process.