January 2020 đĄ Latest Toronto Real Estate Market Data | Toronto Real Estate Market Update | Best Toronto Real Estate Agent Karen Law
Monday Feb 17th, 2020
đĄ Yes! Toronto is in a Seller's Market. And the new high demand for fully detached homes is making headlines.
Watch the đ„video to find out how the year 2020 started off on a seller's market. Be sure to watch until the end of the video for a couple of tips specifically for you, if you are planning to buy or sell a property in the next few months.
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FULL VIDEO TRANSCRIPT:
[00:00:00]
Welcome to our monthly Toronto real estate market update. I'm Karen Law, a real estate agent here in the Toronto area.
Now, some of you might be wondering how the real estate market is and what it means if you're buying or selling a home soon. Now, if you're looking to buy or sell a home this year, make sure you listen to the end of the video where we share a couple of tips specifically for you. And if you haven't already, make sure you hit that "like" and "subscribe" button so you don't miss any future market updates.
So let's take a look at the most recent numbers for January and see what it all means.
The Toronto Real Estate Board published numbers that are reflective of a seller's market, with only two months of inventory in the Greater Toronto area. For comparison, a balanced market has four to six months of inventory. So the GTA has 30 to 50 percent of the inventory of a balanced market. And this is setting up the city to be tight on housing inventory. Now, without any surprise, the start of 2020 saw substantial price increases across all housing types. And this, of course, is fantastic news for homeowners and investors. The market trends in December continued on into January with two housing sectors seeing double-digit increases in home values. Let's take a look at the number of properties that sold in January compared to the same time last year in January 2019. In the GTA, there were 15.4% more properties sold last month January, and on average, housing prices went up 12.3% in the past year.
[00:02:17]
Now, for those who are speculating that there are too many condo buildings or too many new subdivisions being developed in the GTA, let's take a look at the number of new listings. The greater Toronto area is actually experiencing a shortage in the number of listings.
[00:02:40]
There are 17.1% fewer properties being listed for sale. And there are 35% fewer active listings on the market for last month, January compared to the previous year January 2019. So what do these numbers and percentages mean? Well, it means that there are a lot fewer properties available for sale. Yet the demand to purchase properties in the GTA still remains very strong.
[00:03:22]
And when it comes to real estate, when there is a strong demand to purchase, combined with a lot less supply on the market, this is what causes housing prices to drive up substantially, which is why the Greater Toronto Area saw housing prices increase by 12.3% on average over the past year. And these market trends are all indicative of a seller's market, which is what we're experiencing now in the Toronto area.
As we wrap up the winter season and enter into spring, the seller's market is expected to continue due to the shortage of housing inventory that's available on the market. If you're looking to buy or sell a home this year, here are a couple of tips based on the numbers we saw from the Toronto Real Estate Board. If you're thinking of selling a home in the next six months, consider moving your timeframe up to now. And this is especially the case if you are selling a fully detached home. This is because during the same time last year, fully detached properties were down by -2.8% in value. Now detached homes are up 10.5% in value on average. This means you would get more than 13% the amount of money by selling a fully detached home today versus selling that same home, the same time last year in January 2019.
So again, if you're planning to sell a property, specifically a fully detached home over the next six months, my advice is to move up the time frame to now. Because nobody can predict how the real estate market will be several months in advance. Now that the housing inventory is low and there are still a lot of buyers that are looking to purchase the right home, it's a smart idea to market your property today. If you're already planning on selling the property in the next six months.
[00:05:55]
On the other hand, for any buyers who are actively purchasing a home in the Toronto area, please be aware that you are in a seller's market. There is a strong urgency for buyers to act quickly in this market because there's such a shortage of both new and active listings. So if you see a property online, make the time to go and see it today or tomorrow. And as soon as you love the property, submit an offer on the same day. Also, you'll want to ensure that you have a firm pre-approval already in place for your mortgage financing. And because multiple offers is a trend again for hot properties, when it comes to multiple offers keep in mind that the winning bid is almost always a clean offer with no conditions.
Now I'd love the opportunity to speak to you about real estate. Feel free to contact me.
And if you want to stay up to date with the real estate market, click the "like" and "subscribe" button so you don't miss any feature videos.
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When you are ready to move or, have any questions about real estate, give Karen a call
Karen Law
Toronto Real Estate Broker
Century 21
Direct: 647-836-2895
Office: 416-920-1500
Email: KarenLaw.Realtor@Gmail.com
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FILM EQUIPMENT USED
(1) Camera: Canon G7X Mark II
(2) Tripod: Neewer Portable 70 inches Aluminum Alloy Tripod Monopod
(3) Ring Light: Neewer 20 inch Ring Light Kit
(4) Microphone: PowerDeWise Dual Interview Lapel Microphone Set
(5) TubeBuddy Analytics (click here)
(6) Transcribe Video to Text (link works only on smartphone, not on desktop. Click here)
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