Toronto home prices projected to go up 6%

Housing prices in Toronto are projected to increase by 6% next year, according to a report released by real estate company ReMax.

According to RE/MAX’s 2020 Housing Market Outlook Report, the trend of a strong housing market will continue. It’s a trend that definitely favours property sellers.

The report noted the average sale price of residential properties in 2019 was $880,841. Next year, the amount is expected to increase to $933,691.

“We really saw some momentum in the second half of this year seeing sales trends going up strongly,” said Jason Mercer, Chief Market Analyst for the Toronto Real Estate Board.

“On the price side, we’ve also seen market conditions tighten up with sales representing a higher share of listings on the market,” he said. “There’s a competition with would-be buyers and that tends to exert upward pressure on prices, as well.”

The report noted the 6% increase is a result of demand in the detached home market, growth in the economy and better employment rates.

ReMax predicts that move-up buyers — those looking to upgrade their current living situation — as those who will drive up demand in 2020.

Mercer said a steady rate in population growth also drives growth in demand for housing ownership — whether it’s in the new or re-sell market.

“There is an acceleration in population growth and a lot of that is on the back of immigration,” Mercer said. “They’re attracted to Canada and a lot of people settle in the GTA because we offer a lot of different job opportunities across different sectors. We also have cultural diversity to go along with that.

“As the population continues to grow, a lot of them choose to purchase housing, whether it be single-detached homes or condos.”

The ReMax report predicts west Scarborough and Durham Region will be areas of high demand next year thanks to the affordability of properties, closeness to public transit and easy access to  jobs in downtown Toronto.

In 2019, 76,413 properties were purchased in Toronto, according to the report. That’s an increase of 12% from the previous year when buyers snapped up 68,064 properties.

The sale of high-end luxury homes also experienced an 8.5% increase in 2019 and the growth is expected to continue next year.
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