Even against strong headwinds in 2020, the real estate market has proven resilient and dynamic. The Toronto Region Real Estate Board has just announced that member REALTORS® reported over 95,000 home sales in 2020 – the third-best result on record – with the average selling price rising to a record $929,699.
Following a steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels through the summer and fall. A strong rebound in many sectors of the economy, ultra-low borrowing costs, and the enhanced use of technology for virtual open houses and showings fuelled and sustained the housing market recovery.
In the month of December alone, a record 7,180 properties sold – up 64.5 percent over December 2019 – and the average selling price rose to $932,222 – an increase of 11.2 percent over the same month the previous year. (See our animated graphics, below, for all the details.)
While the housing market as a whole recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment. The supply of single-family homes remained constrained, resulting in strong competition among buyers, which fuelled double-digit price increases. In contrast, growth in condo apartment listings far outstripped growth in sales. The increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average selling prices in this category during the last few months of 2020.
“The next 12 months will be critical as we chart our path through recovery. In particular, the impact of resumption in immigration and the re-opening of the economy will be key,” said Toronto Region Real Estate Board CEO, John di Michele.