The Toronto Region Real Estate Board (TRREB) has released its December 2020 housing sales figures, and the numbers show a strong finish to the year. A trend that began about a month into the COVID-19 pandemic kept its steam in the last month of 2020, in both home sales and prices, with no sign of stopping soon.
This post was first published on January 9, 2021. The figures below are from TRREB’s December 2020 report.
December 2020 housing sales at a glance
It looks like home values no longer rise by single digits each year. Instead, double-digit growth in home sales and prices seems to be becoming the norm.
Home sales in December went up a record-breaking 64.5% compared with the same month last year. That also meant over 22% more homes sold than in the month before, November 2020.
Similarly, the average home sale price went up 11.2% compared with December 2019. It also added a 1% increase over November 2020.
Listings and days on market
New listings rose by over 66.1%, and yet homes spent 14.6% fewer days on the market compared with last year. Compared with the previous month, the time needed to sell a property fell by 17.2%.
In other words, even a big wave of new supply did not cool demand. Buyers were ready, and many homes sold quickly after they hit the market. For sellers, this meant strong interest, while buyers needed a clear plan and a firm budget to compete in the December 2020 housing sales market.
If you are buying in any busy market, it helps to know your numbers before you start. Get pre-approved, list your must-haves and decide how far you can stretch before you make an offer.
Why condos moved the other way
The condo side of the December 2020 housing sales told a different story. Interestingly, the condominium market saw a negative trend, in contrast to house sales and prices. This change was a result of the new realities of the pandemic and the way we socialize and work.
Since most people started working from home and no longer needed to commute downtown, the new trend was to look outside the downtown core for places to live. Suburbs such as Mississauga, with more space for the money, became even more appealing.
- New condo listings rose 84.6%, almost doubling, yet sales fell by 27% compared with Q3 last year.
- Despite more listings and fewer sales, overall condo prices kept their upward trend, rising 8.3% in Q3 compared with last year.
- The condo rental market took a hard hit, with monthly rents down by more than 11%.
For investors, lower rents meant a closer look at cash flow. For first-time buyers, however, a softer condo market opened a window that many had thought was shut.
What the December 2020 housing sales meant for 2021
With the development of vaccines, many hoped to see life head back toward normal in the second half of the year. In addition, immigration files that the pandemic had held up would likely move faster. The Government of Canada had already announced a goal of almost half a million new immigrants each year for the next three years. You can read more in my post on Canada’s immigration plan and the economy.
Banks were also offering historic low rates, and that did not look likely to change in the near future. Taken together with the December 2020 housing sales, these were not one but many factors that looked likely to keep pushing home prices higher. In short, today’s prices, even if they seem high, may one day put a smile on the faces of those who invest in real estate now.
Of course, rates and conditions have changed a great deal since then. For what followed, see the RBC forecast for a record 2021 and my February 2021 sales analysis. TRREB also published an infographic with this report, and you can find its market data on TRREB’s website. Meanwhile, please take care of yourselves and follow the safety precautions from health care professionals.
Talk to a Mississauga real estate agent
Do you have questions about what these trends mean for your plans? I am happy to help. Please send me a note through my contact page or call me at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage. If you found this helpful, I would appreciate a Google Review.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
