The number one question we get when we tell people we work in Toronto real estate is “how’s the market?”
So, we’ve got a market update for you today!
Toronto Real Estate Board’s November 2019 stats are out and it is quite clear that the market is only getting hotter.
The average sale price is up 7.1% year over year, which compares November 2019 to November 2018 ($843,637)
Number of sales have increased by 14.2% year over year (7090 sales in November 2019).
Average days on the market have decreased by 11.1% year over year (24 days)
New listings have decreased by 17.9% (8650 listings in November 2019)
Interesting fact is that this has been the biggest jump of 2019 yet.
So what does it all mean?
We can definitely confirm that the two year slowdown we experienced is now officially over.
As the fastest growing city in North America, our population is growing by the day and all of these new residents need homes to live in. This is coupled with the many home buyers who have now re-entered the market after they were forced to the sidelines in 2017 as a result of the Ontario Fair Housing Plan and OSFI mortgage stress test.
This increase in demand for housing leads to an increase in price and a decrease in supply. It’s really simple economics.
Considering the tightening market conditions, it only makes sense that home prices are expected to accelerate even more in 2020. Treb’s Chief Market Analyst Jason Mercer surmises that “[we can] expect the rate of price growth to increase further if we see no relief on the listings supply front.”
If you’re a buyer and looking to jump into the market, there really is no better time than the present. Many were waiting for the market to hit bottom and that ship has long sailed. There are still great opportunities out there and considering the direction of our market, prices now may actually seem “cheap” in relation to where we are headed.
As a seller, the scales have definitely shifted in your favour. We are headed once again to a “seller’s market” with great properties literally being snatched off the market.
It will be very interesting to see the continued growth of our market.
If you’re curious how you can make the most of this growing real estate market, feel free to get in touch with us. We would love to hear from you.