2020 is starting off with a bang. 

January’s low inventory levels have gotten us off to a great start for 2020 and are leading us well into February. It may be chilly outside, but the cold weather hasn’t cooled the Toronto market.

With the total number of active listings and new listings down by 35% and 17% respectively, a lack of inventory has led to a year over year price increase in the GTA of 12.3%. This growth is headed by detached homes and condos where average prices are up 16.7% and 15% in the 416.

Average prices for detached homes in Toronto has reached $1,369,848 and the average condo now sells for $679,182.

Demand led by immigration, low unemployment, and low interest rates has seen the return of bully offers and offer dates where 15… 20… even 25 offers on each property is not uncommon.

Buyers who were sitting on the sidelines due to the mortgage stress tests introduced by the government are moving back in to the market, especially as the stress test benchmark drops due to declining bond rate yields (an effect of the global worries about the likely overblown Corona Virus concerns).

Strong sales stacked up against a constrained supply will continue to result in an accelerated price growth as we move in to the Spring.