Toronto house prices continued to rise in January, with a lack of available properties for sale adding to the upward trend.
Despite the extra tax levied on overseas property investors in the Greater Toronto Area, the latest data from the Toronto Regional Real Estate Board (TRREB) confirmed that 4,581 Toronto houses changed hands in January 2020 – a 15.4 per cent increase year on year. On a monthly basis, Toronto house sales rose by 4.8 per cent.
Active Toronto house listings, meanwhile, are down 35 per cent. Strong sales coupled with constrained supply resulted in double-digit price growth last month.
TRREB President Michael Collins noted in the Toronto real estate board’s release: ‘We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings.’
He continued: ‘Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices. Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments.’
Along with the rising rate of property sales and dwindling inventory, average Toronto house prices were up in January.
In the Greater Toronto Area, prices were up by 12.3 per cent, driven by single-family home and condominium apartment sales in Toronto proper. The average selling price in the Greater Toronto Area was $839,363 (compared to $747,175 at this time last year). Meanwhile in Toronto proper, the average price in January was $884,385.
TRREB also noted in the release that the largest growth in Toronto house prices was seen in the low-rise property market, particularly regarding detached houses. Many buyers who were previously priced out of the market due to the mortgage stress test are re-entering, driving strong year on year detached price growth.
Property experts are predicting Toronto house prices to grow by a further 6 per cent in 2020, based on continued demand for detached housing, higher employment rates and economic growth, as well as improved affordability compared to the last three years.