The GTA housing market in January 2020
Picking up where 2019 left off, 2020 began with strong sales growth, dwindling housing supply and high demand for ownership and rental housing.
January 2020 continued the monthly trend of increased sales coupled with a dip in listings supply. More than 4,580 sales were reported through Toronto Regional Real Estate Board’s MLS system in January 2020, up by 15 per cent compared to January 2019. However, the number of new listings entered into TRREB’s MLS system in January was down 17.3 per cent when compared to the same time last year.
Increased sales up against a constrained supply of listings resulted in increased competition between buyers and stronger price growth in the first month of 2020. The average selling price for all home types combined was up by 12.3 per cent to $839,363, compared to $747,175 in January 2019.
When it comes to an outlook for 2020, without seeing a significant increase in supply, it is likely that new listings will not keep up with sales growth, and over the next year an acceleration in price growth can be expected.
TRREB calls on all levels of government to create concrete housing plans for the next decade
Since entering a new year and decade, tighter market conditions with increased competition between buyers and pent-up demand for both ownership and rental housing has remained an ongoing phenomenon.
Persistent demand for housing in the GTA market can be attributed to a strong regional economy, including low unemployment, steady population growth and low borrowing costs. However, part of the answer to satisfying the issue of ownership housing is the construction of more mid-density housing to provide GTA buyers with more affordable housing options.
TRREB has demonstrated an ongoing commitment in calling on all levels of government to create concrete housing plans. In fact, since 2015, our organization has released an annual Market Year in Review & Outlook Report to shed light on the issues discussed above, using clear and hard evidence, as well as to offer solutions to other major regional challenges in the GTA, including infrastructure requirements and transportation and traffic issues.
The 2020 edition of the report, subtitled “The Time is Now” is all about planning for growth in the Greater Toronto Area and broader Greater Golden Horseshoe.
With the release of this report each year, TRREB continues to make great strides in working with policymakers and industry stakeholders to present fresh ideas on what is critically needed to accommodate the increasing population across the Greater Golden Horseshoe.
To download the Toronto Regional Real Estate Board Market Year in Review & Outlook Report, visit TRREB.ca. We hope you enjoy reading the report and join in the dialogue.
Michael Collins is president of the Toronto Regional Real Estate Board, a professional association that represents 54,500 professional realtor members in the Greater Toronto Area. You can contact him at firstname.lastname@example.org.
For updates on the real estate market, visit trebhome.com.