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Toronto Real Estate Sales And Price Growth Are Back Above Pre-B-20 Levels | Better Dwelling


Greater Toronto real estate is back to a supply crunch. Toronto Regional Real Estate Board (TRREB) data shows sales jumped to a multi-year high for January. The multi-year high for sales, met with a low for inventory – sending prices soaring.

Greater Toronto Real Estate Prices Rise Over 8%

The price of a typical home reached a new all-time high according to the composite index. TRREB reported a benchmark price of $828,200 in January, up 8.72% from last year. The City of Toronto reached $913,700, up 8.76% from last year. The trend is driven by condo apartments, which are pushing double digit gains.

Greater Toronto Benchmark Price

The price of a “typical” composite home across Greater Toronto.

Source: TREB. Better Dwelling.

The rate of growth is accelerating, to the highest rate in years. Both regions printed numbers larger than the month before. The 12-month rate of growth is now at the highest level since November 2017. Growth is driven by apartments, which are now well into double digit annual price growth. Single-family homes are below peak value as of now, but are seeing prices climb.

Greater Toronto Benchmark Price Change

The annual percent change of TRREB’s benchmark price for all home types.

Source: TRREB. Better Dwelling.

The median sale price was much lower, but made a substantial climb from last year. TRREB saw a median sale price of $735,000 in January, up 13.08% from last year. The City of Toronto median sale price reached $725,000, up 12.06% from last year. Considering the price of a “typical home” is more than 10% higher than the price of half of homes sold, the benchmark has limited use in this report.

The average sale price was actually higher than the benchmark, in both sticker and growth. TRREB’s average sale price came in at $839,363 in January, up 12.17% from last year. The City of Toronto average reached $884,385, up 13.72% from last year. Averages are easily skewed, since they aren’t adjusted for size or quality. They are helpful for understanding dollar flow though.

Greater Toronto Average Sale Price Change

The annual percent change of the average sale price of all homes.

Source: TRREB, Better Dwelling.
 

Toronto Real Estate Sales Have Biggest January Since 2017

Greater Toronto real estate sales recovered from the new regulations, and then some. TRREB saw 4,581 home sales in December, up 14.27% from last year. The City of Toronto represented 1,603 of those sales, up 12.73% from last year. This is the highest number of January sales since 2017, and is 6.09% higher than the 5-year median volume for the month.

Greater Toronto January Home Sales

The total home sales across TREB by year, for the month of January.

Source: TRREB, Better Dwelling.

Toronto Real Estate Inventory Made A Big Drop

Who wants to sell when prices are rising rapidly? Few people in Toronto, apparently. TRREB reported 7,839 new listings in January, down 17.13% from last year. The City of Toronto represented 2,633 of those listings, down 16.25% from last year. The big drop in new listings helped to drive total inventory to a multi-year low for the month.

Greater Toronto Sales To New Listings

The number newly listed units per month, in contrast to sales.

Source: TRREB, Better Dwelling.

Fewer new listings, and higher sales made for scarce January inventory. TRREB reported 7,772 active listings in January, down 35.03% from last year. The City of Toronto represented 2,464 of those active listings, down 31.08% from last year. It was the lowest level of active listings for January since 2017, and 33% below the 5-year median for the month. Inventory was tight.

Greater Toronto January Active Listings

The total of active home listings across TREB by year, for the month of January.

Source: TRREB, Better Dwelling.

Greater Toronto real estate is in a supply crunch, with rising sales and falling inventory… again. Sales and price growth are both above levels seen prior to the rollout of the B-20 Guidelines. Anecdotally, agents are also back to seeing bidding wars.

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