WHAT DECEMBER’S NUMBERS TELL US

This has been a year unlike any other, so it’s fitting that December’s numbers are unlike anything we would have expected twelve months ago. A pandemic that has changed our way of life has also had a major impact on the market, and that was evident as 2020 drew to a close.

There were 7,180 home sales reported through the MLS, up 64.5 per cent from December of last year. The average selling price for the month rose 11.2 per cent to $932,222—a new record!

Detached home sales and prices jumped again (by 41.9 and 8.1 per cent, respectively). Many buyers seeking more space during the pandemic also turned to more affordable options. Semi-detached sales were up 57.6 per cent year-over-year, while prices increased by 15.3 per cent. For townhomes, transactions rose by 60.9 per cent, and prices by 17.6 per cent.

It seems that buyers have caught on to the fact that there’s been a lot of recent opportunity (and some bargains) in the condo sector. Sales were up 75.9 per cent year-over-year, while prices were down 4.7 per cent.

To get a bit more insight, it’s helpful to look at the bigger picture. For the third quarter of 2020, there were a reported 7,022 condo sales (compared to 6,398 in 2019). The average price rose to $633,484 from $584,746 the previous year.

FOCUSING ON THE LUXURY MARKET

Let’s turn now to the luxury market, starting with detached homes. The benchmark price for December was $2,500,000—and the most active price range was between $2,500,000 and $2,699,999. On average, buyers spent $3,135,000 on luxury detached homes. It was a seller’s market.

When it comes to luxury condos, it was also a seller’s market. The most active price range was $100,000-$1,099,999. The benchmark price was $915,000, while the average sale price was $1.10 million (though that number down 3 per cent from November). Condos sold for a median of 98 per cent of their list price—a number that was virtually unchanged from the previous month.

LOOKING BACK AT 2020

Of course, December marked the end of year—an unpredictable one for Toronto’s real estate market if ever there was one.

During 2020, there were 95,151 sales reported through the MLS (up 8.4 per cent compared to 2019). The average sale price also rose by an impressive 13.5 pre cent. In the luxury market, we saw an influx of properties sold over the $3 million mark.

From vaccination efforts to a growing number of companies going the work-from-home route, 2021 promises to be an interesting year. While only time will tell what it all means for the market, one thing won’t change. There will continue to be unique real estate opportunities in Toronto—and a local expert can help you find them!

ONWARDS AND UPWARDS…

Are you planning to buy or sell a property in 2021? If so, understanding the market is key. I can help you make current conditions work for you. Reach out today to get started!