Toronto home prices are expected to go up another 6 per cent next year

In case you thought buying a house would be any more affordable next year, Toronto home sales are expected to increase by 6 per cent in 2020. 

According to the RE/MAX 2020 Housing Market Outlook Report, Toronto will likely see a strong housing market that will favour sellers in the new year, continuing the trend from 2019. 

While the average residential sale price was $880,841 in 2019, it's expected to hit $933,691 by next year. 

"Lower unemployment rates, economic growth and improved overall affordability in the Greater Toronto Area are expected to drive the market forward," the report states. 

BREAKING: RE/MAX is calling for a leveling out of the highs and lows that characterized the Canadian housing market in 2019. Healthy price increases are expected in 2020, with an estimated 3.7% increase in average residential sales price: https://t.co/zPqNScvYtx

— RE/MAX Canada (@REMAXca) November 26, 2019

The report also explains that the current rate of construction of new properties in the city is too slow to meet the demand, which puts increasing pressure on the market. It adds that interest rates and employment/income growth will have the greatest impact on the market in 2020.

According to RE/MAX, because of affordability, proximity to transit and easy access to employment in Toronto’s downtown core, Durham region and west Scarborough will be in extremely high demand next year. 

The report also states that Toronto saw 76,413 properties sold in 2019, an increase of 12 per cent from 2018 (68,064). 

Re/Max is predicting a strong seller's market next year. 

The sale of luxury homes over $5 million rose by 8.5 per cent year-over-year in 2019, and that growth is also expected to continue in 2020.

"Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” said Christopher Alexander, Executive Vice President and Regional Director for RE/MAX of Ontario-Atlantic Canada.

"Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic."