I’m sure like many, you are just happy to be leaving 2020 behind. Though as I reflect on the year as it comes to a close, I find it slightly bittersweet. I feel we have a better sense of community as we all came together to help and protect one another. We owe a huge thanks to all the health care providers, first responders, sanitation workers, caregivers, friendly neighbours and all those serving our community this year. I am also very proud of my team as we adapted swiftly to our new realities. As a result we recorded our best year ever, and ranked #1 city wide in volume of sales. But still we are mindful of the so many businesses and people struggling and lending help whenever we can. As the spirit of the season rises around us, I am optimistic for a more promising 2021 for everyone!
So, you’ve heard it all ready, it was a record-breaking year for real estate. Sales soared as demand for more space increased, interest rates plummeted, and those who were able to keep their jobs saved money on everything else. These factors impacted sales in November to 8,766, a new record high, up 24% compared to November last year. The average sale price year to date now stands at $929,433 up almost 12% over the start of the year, largely carried by the detached home market.
Average prices for detached homes across Toronto reached all time highs month after month because of low inventory. This low supply and high demand will likely continue well into the New Year, ultimately pushing selling prices up further. There will likely be an immediate boost from foreign investors followed by fears of a new federal foreign buyer tax. The high-end segment increased by about 55% in activity with a surge in the 905 area code, largely attributed to our new work from home lifestyle.
On the other hand, the condo market softened quite a bit, with prices down 3%. I believe the dip is temporary and possibly an opportunity for the next 6 months, until there is a widely used vaccine, AirBnb users come back, and foreign students return. At which point, there will likely be a catch up with the increases seen by other housing sectors.
Given all the factors mentioned above, it’s clear the 2021 housing market will be a strong one. If you ever have any questions about the market, feel free to reach out to me at any time.
Happy Holidays. Celebrate smartly and be patient as there is light at the end of the Covid tunnel.
Stay safe,
Barry
