Another Record Month!
MARKET COMMENTARY: NOVEMBER 2020
For the fifth month in a row, sales of residential property in the GTA have set a monthly record. The Toronto Regional Real Estate Board reported 8,766 sales through the MLS, making it the most active November in history, with a 24.3% increase over November 2019.
Demand for ground-level housing in the suburbs continues to fuel growth in the market and drive down inventory. Detached home sales were up 30.2% year-over-year (+33.6% in the 905), semi-detached were up 33.9% (32.7% in the 905), and townhomes were up 30.7% (33% in the 905). In total, 83% of all low-rise sales occurred outside the City of Toronto. Total condo sales were 2,032, a year-over-year increase of 7.1%. The 905 accounted for much of the growth, up 23.3% with sales in the 416 essentially flat.
Both New Listings (+33.5%) and Active Listings (+15.4%) increased for November. However, inventory in the condo sector continues to grow as it tightens in other housing segments. There is now 3.3 months of inventory in the condo sector, compared to 1.2 months for detached homes, 0.6 months for semi-detached, and 0.7 months for townhomes.
Low inventory and competition from buyers taking advantage of low interest rates have pushed prices up. The average sales price of $955,615 is an increase of 13.3% from the same period last year. The MLS Home Price Index (HPI) Composite Benchmark (a more accurate indicator of market inflation) was up 10.6% over November 2019. This demand has reduced the number of days on market it takes for a property to sell by roughly 20%.
Looking at pricing by category, detached homes sold for an average of $1,202,281, showing the biggest year-over-year gains at +15.2%. Semi-detached homes were up 12.9% to $946,735, townhomes rose 12.6% to $750,939, and condos were $605,863, down 2% compared to last year.
We are now entering a winter market unlike any other. Despite this being a historically slower period, with few people travelling over the holiday season, we are seeing no signs of market activity letting up. We encourage you to stay informed and speak with your Harvey Kalles sales representative.
More importantly, we hope you are able to make the most of the season. It has been a challenging year for everyone. We wish you and your loved ones a happy holiday season, and the very best for 2021.