The Toronto Real Estate Board reported 4,581 home sales in January 2020 – up by 15.4% compared to January 2019. On a preliminary seasonally adjusted basis, sales were up by 4.8% compared to December 2019.
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. 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.
The MLS® HPI Composite Benchmark price was up by 8.7% compared to January 2019 – the highest annual rate of growth for the Benchmark since October 2017. The Toronto luxury home segment continued to lead the way in terms of MLS HPI® price growth, but all home types experienced price growth above 7% when considering the TREB market area as a whole. The average selling price in January was up by 12.3%, driven by the detached luxury home segment in the City of Toronto.
A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses. A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the OSFI stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment. Strong sales up against a constrained supply continues to result in an accelerating rate of price growth.
“Toronto’s Luxury Real Estate Authority”