Janurary Market Update!
Monday Feb 08th, 2021
Where has the time gone! I hope everyone is having a great start to 2021, and that their resolutions are still intact! The red hot housing market has continued over from 2020 and January saw an increase of 52.4% year over year.
The demand for detached homes is still as present as ever as sales are out pacing new listings. Sales for detached homes were up 15.1% in 2020 where as new listings went down. Demand is outpacing supply. This means that the market desirable single family homes is highly competitive with bidding wars as there are many qualified buyers still looking to get their home. During these times its more important than ever to have someone who represents your interests, as this market can be very confusing to navigate alone.
Condo sales in the 416 has picked up once again, showing that investors / buyers are getting their feet wet once again. With the variety of listings available currently, it is a great time to consider the condo market! The condo market in the 905 area has not dipped or slowed as much as the 416. Demand in these areas still remain high. Average price may have dipped for the 416 area (-8%), but the 905 area saw growth for condos with an increase of 4.8% year over year.
Detached home prices have continue to skyrocket upwards with a year over year increase of 31.2%. ($1,038,247 in 2020 to $1,359,915 in 2021). These trends are a result of the changing conditions due to Covid. Many are looking for homes that are their own, and the fact that many are working from home only further increases that trend. A small den and a nice backyard goes a long way when having to spend most of your time in your home.
Semi-detached and townhouses weren't excluded from the trend either. Those prices were up 26.6% and 15.9% respectively year over year.
With borrowing rates forecasted to still be low, a covid vaccine, change of demand for type of home, and other factors TRREB forecasts over 100,000 home sales for 2021 with 95,115 homes being sold in 2020. Demand will remain strong but low supply and rising prices will constrain activity. New apartment condominiums will face more competition from resale, and declining rents in the rental market. The overall average for all homes is set to pass the $1,000,000 mark for the first time. The fear of mass mortgage deferrals has definitely died down, as many home owners may have deferred thier mortgage in an over abundance of caution over actual need; many have resumed payments. TRREB is forecasting a year over year increase of roughly 10% for all home types in 2021.
Navigating this market can be confusing, and I'm here for you. If you have ANY questions feel free to call / text/ email me anytime!