What a difference a year makes.
Greater Toronto Area Realtors reported 4,581 home sales during January 2020, an increase of 15.4% when compared to January 2019. Month over month January 2020 witnessed a 4.8% increase in sales over December 2019.
2020 began where 2019 left off with the average sale price continuing its upward trend. Overall, the average sale price for all home types in January increased by 12.3% to $839,363. In Markham, the average sale price for all home types increased by 13.5% to $920,497 when compared to the same period last year. In Stouffville, the average sale price for all home types increased by 22.2% to $988,039 when compared to January 2019.
The strong price growth can be contributed to the increased activity in the low-rise segment, particularly detached homes.
Both new and active listings continue to see a decrease when compared to 2019. New listings were down by 17.1%, while active listings were down by 35% to January 2019. With very strong growth in the number of sales up against a continued dip in the number of new and available listings, steady price growth will continue. The only resolution will be to increase the amount of inventory available for purchase.
As we enter 2020, the luxury market is poised to become more active as move-up buyers look to take advantage of the stronger market conditions. Currently, there are 46 properties valued over $3 million available for purchase. In Stouffville, 6 properties are available for purchase above $3 million.
What Does This All Mean?
The real estate market has started very well with January reporting strong numbers. Many buyers who were on the sidelines due to the OSFI stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment.
Here at RE/MAX All-Stars Benczik Team Realty, we have had a strong start to the year and already witnessed an increase in activity with our properties. Steady population growth, low unemployment and low borrowing costs continued to support ample competition between buyers in all major market segments.