GTA resale market finishes 2020 on a high note

Despite an unprecedented year due to COVID-19, including necessary public health restrictions and uncertainty surrounding the economy, Greater Toronto Area realtors reported 95,151 home sales in 2020. An increase of 8.4 per cent compared to 2019, this marks the third-best result on record. There were 7,180 sales in December, up 64.5 per cent year-over-year. In fact, year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family homes.

After a pronounced dip in market activity between mid-March and the end of May, conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.

The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $932,222 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family homes in the suburban regions of the GTA.

GTA realtors listed 156,792 homes in 2020, up by 2.6 per cent compared to 2019. There were also 5,865 new properties listed in December, up by 66.1 per cent compared to December 2019.

Ongoing dichotomy between single-family homes and condos

The GTA housing market took an unfamiliar path in 2020. Following the steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels throughout the summer and fall. A strong economic 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.

While the housing market as a whole recovered strongly last year, there was a dichotomy between the single-family market and the condominium segment. The supply of single-family homes remained constrained, resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average selling prices during the last few months of the year.

The next 12 months will be critical as we chart our path through recovery. In particular, the impact of resuming immigration and reopening of the economy will be key. TRREB will release its January results and Market Year in Review and Outlook 2021 report on Feb. 8. This will include a forecast for home sales and selling prices, the latest Ipsos consumer polling on the GTA housing market and new research related to innovative ways to bring on more housing supply.