Dec 5, 2020
Monthly sales figures for the month of December 2020 are released by TRREB (Toronto Region Real Estate Board).
With the latest sales figures for November 2020, it seems as if the continuous double-digit upward trend, both in home sales and prices, is unstoppable.
November residential sales have once again shown us a double-digit upward trend by having more than 24% more sales compared with the same month a year ago in November 2019. Seasonally adjusted sales compared with last month were slightly down (-2.1%).
Average Sales Prices continued their strength by seeing a double-digit growth of 13.3% higher than the same month a year ago in 2019. Home sales prices continue to rise from last month by about 1%.
Seeing the continuous upward trend in housing prices, it seems like, more and more Sellers are coming into the market with new home listings getting an increase of almost 34% in November 2020.
Although multiple-offers and over-asking prices have become almost a norm in this fast-paced market it also looks like the Buyers have a bit more choices at hand so the average Sales-to-New-Listing Ration went down by 6%.
It is also very interesting to note that a property stays fewer days in the market to sell, that is 28 days compared to 38 days compared to the same month last year, a noticeable 20% fewer days in the current market.
This trend of quicker sales has also squeezed from last month of October from 24 days to sell to now 19 days, a drop of almost 21%.
It is very important to know that in the last ten years the benchmark Home-Price-Index (HPI) has recorded more than 200% growth from the year 2010 to date. Except in the period between 2017 and 2018 where the Index saw a plateau, the trend continued it’s strength Northward.
Banks are offering historic low mortgage rates. According to a recent article in the Globe and Mail, HSBC is offering less than a 1% variable mortgage rate.
With higher Sales prices the Sellers are getting into the market while seeing the historic low mortgage rates the Buyers can afford their dream homes and are shopping for the best deals.
With both Sellers and Buyers benefitting from the current market conditions, the Real Estate market in major urban centres, especially in and around GTA, seems like there is no returning back.
A quote from a previous blog that stands true to the moment “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.”
Please see the attachment for the infographic from TRREB.
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