It seems there’s no stopping the Toronto real estate market. Despite a global pandemic, in the face of bubble rumours and forecasts of falling prices, this is one housing market that continues to grow and surpass expectations. And according to the data from the Toronto Regional Real Estate Board (TRREB), there’s no end in sight.
Looking back at the tumultuous year that was 2020, early forecasts put Toronto on track for a strong year. Even Covid-19 and province-wide lockdowns – which ground the economy to a halt – didn’t put a dent in the demand, the rate of sales, or the price growth that continued after a short-lived lull last spring. The year ended like it started – shattering records and leaving everybody wondering, “What’s next?”
According to TRREB, January 2021 saw GTA home sales surpass last January’s sales by more than 50 per cent. Average selling price followed suit, rising to $967,885. Listings, though up year-over-year, still fell short of the unprecedented demand. All these factors point to one thing – more price growth ahead. In fact, the average Toronto house price is expected to top $1 million this year. It’s astounding, really, when you consider the national average price hovers around $600,000.
Home sales this year are anticipated to top 105,000, bolstered by the economic recovery in the second half of the year, as jobs return and low interest rates continue.
If you already own a home in the city and are timing the market to cash in on all that equity, then 2021 is your year for sure. Multiple offers are not just common, they’re expected.
If you’re just hoping to break into the housing market this year, it’ll be a challenge, but certainly not impossible. The competition is fierce and it’s likely there are 30, 40, 50 other offers on the table. Buyers will need to pack their patience ahead and be flexible in their search criteria, and go in with their very best offer. Last but not least, don’t get discouraged.
Now is a great time to start and shop Toronto’s condo market as well, which currently still has some stock and yes, negotiating power! These conditions are unlikely to last, however, with the rate of new listings coming on stream being eclipsed by the growing rate of sales. Quite simply, stay informed and connected with a real estate professional like us and get in while you can….
Working with a professional real estate agent is the key these days and alerting you of new listings (perhaps even before they officially hit the market) and advising you on how to proceed with your offer.
We are here to help and a phone call away to answer any of your questions during this unique time.