Welcome to the November 2020 Monthly Update from Our Trusted Realtors.
Toronto Regional Real Estate Board (TRREB) released its Marketwatch report for the month of November 2020. The statistics are as follows:
- The total number of sales in November, 2020 was 8,766. This number is up 24.3% from the number of sales in November, 2019 when there were 7,054 sales. Sale of 8,766 homes translates to >292 homes sold every day for the entire month of November i.e. >12 homes sold every hour.
- The number of new listings was also up by 33.5%, to 11,545. Despite such a high number of listings, the supply remains tight given the blistering demand.
- The average selling price for all home types was up by 13.3% on a YoY basis compared to November, 2019 at $955,615.
- The MLS Home Price Index Composite Benchmark is also up by 10.6% on YoY basis.
The following infographic paints a quick summary for you.
GROUND-REPORT & OUR ANALYSIS
We have had 5 straight record months. We saw only a marginal decline in sales from last month. However, this is not a surprise as the market starts to adjust for the winter season. What is noteworthy is that the demand and sales in this November is 33% more than what we had sold in November, 2019 which had been an unusually strong month.
The single family homes continue to drive the sales. We continue to see multiple bids and a very low Days-on-Market for most single-family homes. TRREB’s Marketwatch Report also states:
Generally speaking, year-over-year growth in sales was stronger for single-family homes in the GTA regions surrounding the City of Toronto, but annual single-family growth rates remained robust in the ‘416’ area code as well. “Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth. Market conditions tightened in many single-family market segments in November, resulting in double-digit year-over-year increases in average selling prices for detached houses, semi-detached houses and townhouses.
HOW DOES THE FUTURE LOOK?
As we have been continually reporting, we remain optimistic Real Estate will remain the best financial instrument for your investment and retirement planning strategies.
The condominium apartment market is certainly more balanced than in previous years, with some buyers benefitting from lower selling prices compared to last year. However, this may be somewhat of a short-term phenomenon. Once we move into the post-COVID period, we will start to see a resumption of population growth, both from immigration and a return of non-permanent residents. This will lead to an increase in demand for condominium apartments in the ownership and rental markets.
Therefore, for people, who prefer condominium-living, this might be the best time to buy where you can benefit from balanced pricing, choice availability, and low mortgage rates – before there is a surge in demand from the high-levels of immigration.
It is worthwhile to repeat, “The federal government has set immigration targets above 400,000 people for each of the next three years. The GTA will undoubtedly continue to benefit from this population growth. All of these people will need a place to live, whether in the ownership or rental markets”.
LINKS TO MEDIA REPORTS
Following are links to just a few of the media reports.
2. HUFFINGTON POST
3. THE STAR - DETACHED HOUSES DRIVE UP HOME SALES & PRICES
?4. FINANCIAL POST - CANADIAN CASH HOARD TOPS $150B
5. CREACAFE - HOW SOME PEOPLE ARE DEALING WITH COMPETITION
At OurTrustedRealtors, we pride ourselves on our focus to your personal and complete satisfaction. We view numbers such as sales results as nothing more than a reflection of our commitment to serve our clients. We believe success is not in the number of deals, but in the way we work with people and community. You can expect your real estate transaction with us to be a great experience. Your success truly is our success.
This fulfillment is more important to us than charging an unconscionable fee for our services. We charge 1% for listing your home. If you are buying a home, we give you a cash-back (a portion of the commission we receive from the seller) - usually, this cash-back ranges between 1 to 1.5%.
Please call Sanjiv at 416.409.9090 if you have any questions or are about to embark on a real estate purchase or sale.