toronto home prices 2020 Photo: James Bombales

The average selling price of a Toronto region home hit an all-time high in 2020, rising 13.5 percent from 2019 to $929,699.

Home sales for the entire year also posted strong annual growth, up over eight percent from 2019’s total, despite the significant slowdown in activity through the spring months of the pandemic. The 2020 sales total — at 95,151 transactions — was the third-highest result on record.

The 7,180 homes that changed hands last month was a record for the month of December. The December result means home sales broke records in five of the last six months of the year, according to new data released today by the Toronto Regional Real Estate Board (TRREB).

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With 2020 now in the rearview mirror, TRREB released this collection of figures spanning the entire, very unusual year, along with its regular monthly figures for December.

“The Greater Toronto Area housing market followed an unfamiliar path in 2020. Following the steep COVID-induced drop-off in demand during the spring, home sales roared back to record levels throughout the summer and fall,” said TRREB President Lisa Patel, in a media release.

“A strong economic rebound in many sectors of the economy, ultra-low borrowing costs and the enhanced use of technology for virtual open houses and showings fuelled and sustained the housing market recovery,” she added.

The robust price growth recorded in 2020 was largely attributable to strength in single-family homes, which continued on a tear in December, posting annual price increases in the 14 percent to 18 percent range for detached, semi-detached and townhouse property types. Meantime, condo prices recorded another annual decline, dropping two percent to an average selling price of $600,840 across the Toronto region.

“While the housing market as a whole recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment,” said TRREB Chief Market Analyst Jason Mercer.

“The supply of single-family homes remained constrained resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average condo selling prices during the last few months of the year,” he said.

TRREB plans to release its Market Year in Review and 2021 Outlook report on February 8th. It promises to explore the effects of an anticipated immigration rebound and the economy’s reopening on the region’s housing market.

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