Owning a house or a property in a reputed city is a keystone of wealth. Only people who make money during their sleep are Landlords. So to invest in such property it’s important to know what’s happening in the competitive market. So let’s have a quick look at the Nov 2020 market watch which was recently released by TRREB.
The record pace of home sales in the fall continued with 8,766 sales reported in November by Greater Toronto Area REALTORS® through the Toronto Regional Real Estate Board’s (TRREB) MLS® System. This result was up by 24.3 per cent compared to November of last year.
Year-Over Year Summary-
Number of transactions has not decreased and it kept increasing over a month with a record percentage of 24.3. This is due to the covid situation and low interest rates. If you look at the market closely, there is a huge demand lying around the corners of detached houses, Semis and Townhouses. Unbelievable inventory on condominium segments with 84 percent clearly explains that there are a lot of sellers trying to offload their condominiums. But the price remains stable, in fact, in Q3 there is still an 8.3 percent increase.
“Home buyers continued to take advantage of very low borrowing costs in November, especially those looking to buy some form of single-family home. Competition between buyers for ground-oriented homes has been extremely strong in many neighbourhoods throughout the GTA, which has continued to support double-digit annual rates of price growth,” said Lisa Patel, TRREB President.
Sales Activity and Average Price-
The average median price in NOV 2020 was $955,615 and Average DOM was 20 but as per OCT 2020 stats Average Median price is $$968,162 and the Average DOM is 16. Now, do you see the average days on the market? It’s actually 20 days. The increased active listings 13,978 are proof of the sellers market more than a buyers market.
The MLS® HPI Composite Benchmark was up by 10.6 per cent in November 2020 compared to November 2019. The average selling price for all home types combined was up by 13.3 per cent to $955,615.
As Usual detached home sales topped with the total sales activity of 4,222 so the overall detached house property demand is still going strong in GTA.
Increased rental rate is short term, once the U.S borders open up again and the vaccine is administered the rental rates will start coming to normal because new immigrants and international students will be coming back to make the rental situation normal.
There’s not enough inventory in the market and a lot of buyers coming in made the market situation as a sellers market. If you’re an investor, then December, January and February are the golden times to earn some good returns on your invested money.
Average Selling price is still going up and there is no slowdown in pricing especially in the low rise segments, further into the condominium segment of the market that we will notice is the number of sales actually gone up by 10 percent.
Apart from the overall real estate market trend, it is important to know the area wise trend as well to invest in the right place.