The home sales market continues to boom in January, which traditionally has been a slow time for realtors. According to the stats that were just released for January, we started 2020 where 2019 left off, and that the Toronto and GTA real estate market is showing signs of strength in price and the continuation of a new upward trend. The average selling price for the City of Toronto is up 13.7% to $884,385 compared to a year ago. Again, the problem is the shortage of listings which were down 16%. Even if the volume of transactions remains relatively low in the Toronto area, demand is building. It seems anything coming to market is being snapped up in days. The lack of housing supply is the main reason behind soaring prices in and around Toronto.
This week TD Bank slashed its 5-Year posted mortgage rate used for the stress test to 4.99%, the lowest among Canada's big banks, fueling demand for lower priced homes among first time buyers. Last week the number of freehold properties sold, saw no change week-over-week, but a huge influx of new listings hit the market up 65% from the previous week. Hot spot neighbourhoods like Riverdale and Leslieville are eagerlyawaiting more listings to appear with 64% of properties selling at or above the asking price.
The downtown condo market is insane. It seems downtown condos offer a lifestyle that buyers want. Multiple offers and over-asking prices are the norm, but supply is still an issue. The condo market saw a 10% decline in listings last week and sales remained steady with no increase week-to-week. According to the stats that werereleased condo prices have jumped a whooping 15% in the City of Toronto and the surrounding GTA comparedto the same time last year. There are approximately 29,500 condos under construction that are scheduled to be completed this year, surpassing the previous high set in 2014 (21,000).