GTA resale market in December sees record sales and 2020 average selling price

Despite an unprecedented year due to COVID-19, the GTA resale market in December 2020 saw the third-best result on record, with 95,000 home sales, according to the Toronto Regional Real Estate Board (TRREB). The average selling price reached a new record of almost $930,000.

“The Greater Toronto Area housing market followed an unfamiliar path in 2020,” says TRREB President Lisa Patel. “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.”

Constrained supply

“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,” adds Jason Mercer, TRREB chief market analyst. “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 condo selling prices during the last few months of the year.”