December numbers are in and the January market is upon us. One thing’s for certain, demand for houses is not showing any signs of slowing down.
I know, I know, I’m a realtor and we’re always talking about how hot the market is, right? While that’s true for some, that’s not my business model. I have no vested interest in over-inflating numbers or providing false information. My business is based on referrals from satisfied clients so if I’m encouraging decisions based on smoke and mirrors, then no one benefits. Whether the market is up or down I’m going to give honest insight into what I think is going on and how that impacts your situation.
So what exactly are we seeing over the last month and the start of January? In December we were anticipating a slower month since it was expected that many people, parents, and professionals would be burnt out and badly needing some down time. What happened was the exact opposite. We had the highest sales volume month in recent history (7,180), up an unbelievable 64.5% from last year and the average for the last decade.
There were also 5,865 new listings on market in December, which is the second highest number in a decade. This is impressive considering the runaway pace of the market since May. What’s even more interesting is if you consider how many sales there were compared to new listings. There were more sales than new listings! This means that the market absorbed inventory that had been previously just sitting there.
Last time we saw something like this? You guessed it, in December of 2016 before the runaway market of 2017. If we don’t see a decent amount of supply coming to market in the next few weeks and demand keeps pace with December, then we could be heading into a tricky situation.
In other record setting news, the December 2020 average price reached a peak of $932,222, primarily driven by single family freehold homes in the suburban areas outside Toronto (detached – up 17.7%, semi – up 16.6%, row – up 14.1%, and condos – down 2%). Freehold homes continue to outperform condos in the Toronto core, and suburban homes continue to outperform downtown numbers.
Some other interesting takeaways from the December and 2020 market? For all of 2020 in the GTA there were over 95,000 sales, the third highest on record. There was also an uptick in percentage condo sales vs total volume of sales which could be an indication that the downtown core condo market tumble is finally stalling (with a 93% increase in sales volume compared to last year and an average price decrease of 9%).
Looks like we are in for an interesting start to the year. Stay tuned. If you’re thinking of making a purchase this year and are curious about the costs involved, check out this blog.
