Toronto home prices expected to skyrocket in 2020
March 06, 2020 - Toronto
The Greater Toronto Area’s real estate market is flashing signs of the overheating we saw in 2017, as supply shrinks and prices climb higher.
Home sales rose 15.4% year-over-year in January according to new statistics from the Toronto Regional Real Estate Board (TRREB).
Active listings fell 35%, leaving buyers to duke it out with each other because there were fewer properties available to satisfy demand.
John Pasalis, president and broker of record at Realosophy Realty, says there are some misconceptions around the dwindling supply.
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“A common explanation for declining inventory is that people aren't upsizing - but the 23% year-over-year growth in detached home sales (the highest increase across all house types) should put that theory to rest,” Pasalis told Yahoo Finance Canada.
As a result, the average price of a home is $839,363, up 12.3% compared to the same period last year.
“Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices,” said Michael Collins, TRREB’s president, in a release.
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“Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments.”
Condos led the way with a 15.1% price jump, even though sales were only up 8%.
“The condo market, more than the other segments, appears to be more impacted by extrapolative expectations.” said Pasalis.
“Strong demand from investors and a real anxiety from buyers that they have to buy now or they'll never be able to afford one.”
By Jessy Bains - read the rest of the story @ Yahoo Finance Canada
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