Seller’s market expected in 2020, prices to increase 6%
RE/MAX is predicting the Toronto housing market will favour sellers in 2020, with average residential sale price increasing by six per cent next year, based on increased demand in the detached market, better employment rates and economic growth, as well as improved overall affordability in the Greater Toronto Area over the last three years.
The Toronto housing market sat in seller’s territory in 2019, and this trend is expected to continue next year. The rate of new construction in the city is too low to meet the increasing demands of Toronto’s quickly growing population, which continues to put pressure on the market.
Currently there are two months of inventory, and these conditions are expected to prevail in 2020. Move-up buyers will drive demand in 2020.
Growth of Toronto luxury housing market continued to thrive in 2019, with the sale of homes over $5 million rising by 8.5 per cent year-over-year. Growth in this property segment is expected to continue in 2020.
Interest rates and employment/income growth will have the greatest impact on the market in 2020.
Durham region and west Scarborough will be in high demand, which RE/MAX attributes to affordability, proximity to transit and easy access to employment in Toronto’s downtown core.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”