This monthly real estate sales analysis looks at TRREB’s figures for November 2020. The Toronto Regional Real Estate Board released them in early December 2020, and the continuous double-digit upward trend in both home sales and prices seemed unstoppable.
This post was first published on December 5, 2020. The figures below are from November 2020.
Real estate sales analysis: November 2020 at a glance
November residential sales once again showed a double-digit upward trend. There were more than 24% more sales compared with the same month a year earlier, in November 2019. Compared with last month, however, seasonally adjusted sales were slightly down, by 2.1%.
Average sale prices kept their strength as well. They showed double-digit growth, 13.3% higher than the same month in 2019. Home prices also continued to rise from last month, by about 1%.
So the big picture was clear. Demand stayed strong through the fall, even during the pandemic, and prices followed it upward.
More sellers and more choice for buyers
Because housing prices kept rising, more and more sellers came to market. New home listings rose by almost 34% in November 2020.
Multiple offers and over-asking prices had become almost the norm in this fast-paced market. Yet buyers also had a bit more choice at hand. As a result, the average sales-to-new-listings ratio went down by 6%.
In this real estate sales analysis, that shift matters. A lower ratio means supply was catching up a little with demand. For buyers, it meant slightly more homes to compare. For sellers, it meant a little more competition from other listings.
Here is a simple tip for sellers. Price the home for the market you are in, not the one you hope for. Then make the home easy to see. Clean it, fix small repairs and allow flexible showings.
Homes were selling faster
It is also very interesting to note that properties spent fewer days on the market before selling. It took 28 days, compared with 38 days in the same month last year, which is about 26% fewer days (calculated).
This trend of quicker sales also tightened from October. Days to sell fell from 24 days to 19 days, a drop of almost 21%.
For any real estate sales analysis, days on market is a helpful signal. When homes sell quickly, buyers need to be ready. That means having a mortgage pre-approval, a clear budget and a list of must-haves before the search begins.
The long-term view: ten years of growth
It is very important to know that over the last ten years, the benchmark Home Price Index (HPI) recorded more than 200% growth, from 2010 to date. Except for the period between 2017 and 2018, when the index levelled off, the trend kept heading north.
A long-term view helps put any single month in context. A real estate sales analysis for one month can show the mood of the market. However, the ten-year trend shows why many families in Mississauga and the GTA see a home as a long-term investment.
Low mortgage rates in this real estate sales analysis
Banks were offering historically low mortgage rates. According to a recent article in the Globe and Mail, HSBC was offering a variable mortgage rate of less than 1%.
With higher sale prices, sellers were coming into the market. Meanwhile, with historically low mortgage rates, buyers could afford their dream homes and were shopping for the best deals.
Low rates change the math for a buyer. A lower rate means a smaller monthly payment on the same loan. So buyers could stretch a bit further. But rates do not stay low forever. That is why a careful buyer plans for a higher rate at renewal, too.
With both sellers and buyers benefiting from these conditions, the real estate market in major urban centres, especially in and around the GTA, seemed to have no way back.
A quote from a previous blog still rang true at the time: “Contrary to the general impression that due to COVID-19 the home sales would be down and eventually, the prices would see some pruning during this period, what we are seeing is multiple offers and properties selling over asking prices, and the trend is continuing upward without looking back.”
What this real estate sales analysis means today
Much has changed since November 2020. Interest rates, in particular, have moved a great deal since then. So please read this real estate sales analysis as a record of that month rather than a guide to today’s market.
To follow the trend over time, see my review of the October 2020 TRREB report and my December 2020 housing sales review. TRREB publishes its full monthly market reports on the TRREB website.
Take care of yourselves and follow the safety precautions defined by healthcare professionals. Please pray for the safety of all and for an end to the COVID-19 pandemic soon. #BeSafeAndHelpOthersBeSafe
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Talk to a Mississauga real estate agent
Do you have questions about buying, selling or simply planning your next move in Mississauga or the GTA? I am happy to help, so please send me a message or call me at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage
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.
