Jan 9, 2021
The Toronto Region Real Estate Board (TRREB) has released the monthly sales figures for December 2020.
A trend that was set after a month into the COVID-19 pandemic continues its steam in the last month of 2020, both in home sales and prices, that sees no stoppage soon.
Looks like gone are the days when home appreciation used to be in single-digit increments year over year. The latest trend seems to become a norm as double-digit upward growth in home sales and prices.
The home sales in December went up a record-breaking 64.5% compared to the same month last year. This added over 22% number of residences sold compared with last month, November 2020.
Similarly, the Average Home Sales price went up 11.2% in a year, compared with the same month in 2019. It added a 1% increase from last month of November 2020.
Even though over 66.1% of new listings hit the market, it remained 14.6% fewer days in the mark compared to last year.
The new listing time saw a reduction in time to sell the property by 17.2% fewer days as compared to the last month.
Interestingly, the Condominium market a negative trend in contrast to house sales and prices.
This change is a result of new realities of the impact of the COVID-19 pandemic on lives and the way we socialize and work.
Since the majority of people have started working from home and don’t need to commute downtown, the new trend is to look for out of downtown core for places to live.
We saw 84.6%, almost doubling, the new condo listings coming to market, we saw a reduction in sales by 27%, compared to Q3 in last year.
Interestingly, despite the fact there were more new listings, there were fewer sales, still, the overall prices of Condos kept the upward trend by 8.3% in the Q3 compared to last year.
The condo market hit hard in the rental market by seeing a reduction of more than 11% in monthly rent.
With the development and availability of vaccines, one can hope to see life heading towards normalcy in the latter half of this year.
Looking at all those immigrant files which were held up due to the pandemic would be getting processed at a faster rate.
The government of Canada has already announced that we are aiming to have almost half a million new immigrants coming to Canada each year for the next three years.
Banks are offering historic low rates and it does not look like changing in the near foreseeable future.
These are not one but many factors that look like would keep driving the home prices further higher and higher up.
In short, it seems like if today’s prices, even though may seem high, would put a smile on the face of those who would have invested in Real Estate today.
Please see the attachment for the infographic from TRREB.
Take care of yourselves and follow the safety precautions defined by healthcare professionals.
Please pray for the safety of all and seeing and end of the COVID-19 pandemic soon.
#BeSafeAndHelpOthersBeSafe
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A. Q. Mufti
