Toronto home prices expected to increase by almost 10 per cent this year
Toronto home prices are pretty much always on the rise, and sadly it seems that's only going to continue as we get further into 2020.
According to the Toronto Regional Real Estate Board's (TRREB) fifth annual Market Year in Review and Outlook Report, the average price for a Toronto-area home is expected to hit the $900,000 mark in 2020 — an almost 10 per cent increase over last year's average of $819,319.
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The report predicts this particular outcome if the current popularity of low-rise homes (semi-detached houses and town houses) and cheaper condos continues, though the average could reach close to $1 million if more homebuyers seek out detached homes instead.
"The most popular home type for intending buyers was the detached house. However, the share of intending buyers GTA-wide who sought a detached house has declined markedly since the first survey in 2015 – from 54 per cent in the fall of 2015 to 42 per cent in the fall of 2019," the report states.
"This decline was evident both in the City of Toronto and surrounding regions. An increase in buying intentions for condominium apartments and semi-detached homes has accounted for the dip in detached buying intentions."
It was an honour to receive a personal video message from Toronto Mayor John Tory at our Market Year in Review and Outlook Economic Summit 2020! Thank you, Mayor Tory, for your support and initiatives on the housing file!— Toronto Regional Real Estate Board (@TheReal_TRREB) February 6, 2020
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According to the report, a shortage of listings is also expected to continue this year.
"Unless we see a significant increase in supply, it is highly likely that new listings will not keep up with sales growth in 2020," the report notes.
"The end result will be an acceleration in price growth over the next year, as an increasing number of home buyers compete for a pool of listings that could be the same size or smaller than in 2019."
Home sales are expected to hit the 90,000 mark in 2020, with a point forecast of 97,000, which is an increase of almost 10.5 per cent compared to 87,825 sales reported in 2019.
Overall, sales of all housing types in January 2020 increased by 15.4 per cent compared to January 2019, while new listings dropped by 17.1 per cent and active listings by 35 per cent.
"After more than three years of slower market activity brought on largely by changes in housing-related policies at the provincial and federal levels, home sales will move closer to demographic potential in 2020," said Jason Mercer, TRREB's chief market analyst in a press release on Thursday.
"The key issue, however, will be the persistent shortage of listings. Without relief on the housing supply front, the pace of price growth will continue to ramp up."
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