The GTA real estate market has seen many changes in activity in 2020. First, there was the initial spring lockdown which led homebuyers and sellers to put off their home search and selling process, which resulted in very low activity levels. However, as the strict measures surrounding the COVID-19 pandemic slowly lifted and homebuyers and sellers gained more knowledge about taking protective measures and steps, the market started to operate again and has reached new heights around the end of the year and in January 2021, with record high sales and a price increase. Let’s take a closer look at the current market activity in the GTA and what it means for you as a seller or buyer.
Sales are up
It seems that everything the market missed out on in the spring season has been made up for in the fall and winter, with homebuyers practically storming the market, especially when it comes to detached homes in suburban areas. Homebuyers, wanting to get in on the record low interest rates that were set during the pandemic, rushed to the market to secure spacious detached homes for themselves and their families. The low borrowing costs have helped them enter the detached market, which otherwise they may not be able to afford. The stats seem to support this claim, given that the number of sales jumped by over 50% in January this year compared to January 2020.
Inventory levels are down
With the many homebuyers out there looking for their perfect home, GTA homes are selling rapidly. The demand in the GTA market is very strong, surpassing current supply levels. This means that sellers are in an extremely favorable position, enjoying multiple offers and bidding wars over their listed homes, especially if they are selling popular properties, i.e., a detached or semi-detached.
Prices are up too in most GTA areas, including Vaughan, Richmond Hill and Markham
The average home price in the GTA increased by 15% in January 2021 on a year-over-year basis, whereby again, detached homes played the main role in such an outcome. In fact, the average price for detached homes grew by 33% year-over-year.
Vaughan accounted for the most sales of condos and single-family homes in the York Region in 2020. The average sold price in Vaughan in January 2021 stood at $1,188,330 (an 11% increase compared to January 2020). Richmond Hill saw an even slightly higher increase in the average home price year-over-year, i.e., 12%, with the average home price at $1,233,079, while Markham saw its average home price grow by 14% year-over-year and is now $1,079,831. If you are looking for a home in one of these areas, click here for more tips.
Whether you are a GTA homebuyer looking to take the opportunity of the low interest rates in place or a seller looking to sell while the market is still hot, or you simply have a question regarding the market, listings and prices, make sure to call Susan Macarz for more info and tips or contact Susan here.
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