The Average Home Price in the GTA Crept Closer to $1M in 2019
The average selling price of a home in the Greater Toronto Area (GTA) in 2019 increased 4% to $819,319 according to a new report from the Toronto Real Estate Board (TREB), and those looking to enter the buyer’s market can expect prices to continue to rise in 2020 unless there is an increase in supply, the board predicts.
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According to the latest report, residential sales in the GTA this past December were up by 17.4% year-over-year to 4,399, contributing to the overall total of 87,825 home sales in the calendar year. This is up 12.6% compared to the decade low of 78,015 sales reported in 2018.
While sales were up in 2019, the number of new listings entered into TREB’s MLS System was down 2.4% year-over-year. The report revealed that for the past decade, annual new listings were largely in a “holding pattern” of between 150,000 and 160,000, despite the upward trend in home prices over the same period.
“Taking 2019 as an example, we experienced a strong sales increase up against a decline in supply,” said Jason Mercer, TREB’s Chief Market Analyst. “Tighter market conditions translated into accelerating price growth. Expect further acceleration in 2020 if there is no relief on the supply front,” said Mercer.
According to TREB, the average selling price in December 2019 was $837,788 – up nearly 12% year-over-year. For the 2019 calendar year, the average selling price was $819,319, up by 4% compared to $787,856 in 2018.
For December, detached homes recorded higher price gains, up 11.6% in the month to $1.05 million as sales increased 26.2% from a year earlier. The average condo price was up 10.4% to $612,464, while sales were up 6.9%.
TREB said the increase in sales activity in the second half of the year was primarily due to a strong economy throughout the region and an overall decline in mortgage rates.