Jennifer English


15 December 2020
Jennifer English

November numbers show some relief for Toronto's condo market 

The freehold market by comparison remains ever tight on inventory

The average sale price remains strong across all property types year-over-year with an increase of 7.6%. It did drop from last month, 4.6%, which, given the number of sales for all property types was also down seasonally, makes sense the average sale price would be impacted. 

Months of inventory for detached homes sits at 1.5 which is down by half a month from last year and on-par with last month. For semi's, it's tracking neck-and-neck with last year and last month. Finally, condo apartments felt some relief with inventory dropping just shy of half a month from October. Of course, compared to last year, it remains significantly higher with inventory up 192%.

Detached Properties in the City of Toronto

This property type is still in high-demand though the number of sales dropped from last month

The average sale price saw another solid increase from this time last year, up 8.6%. From the seasonal standpoint, unlike the past couple of months, there was a small increase of 0.4%.

With inventory getting tighter and buyer demand remaining at a super-high level, there's a lot of pressure on detached homes. Even though the number of sales dropped 24% from last month, so too did new listings, by 39%. And, while the weather this year has favoured the real estate market chugging along, as with every year, the fast-approaching holiday season has Sellers hit pause. 

Semi-detached Properties in the City of Toronto

Semi's are keeping step with their detached counterpart

Here the average sale price hit an 8.8% increase year-over-year and went up again from last month 0.6%. As with detached homes, the number of sales and new listings dropped compared to October but, year-over-year, semi new listings were up 55.5% versus detached increase of only 16.5%. Months of inventory is holding fairly steady, yearly and monthly. Currently sitting at 0.81, last year 0.77, and last month 0.86. 

Condo Apartments in the City of Toronto

Condo Sellers can breath a sigh of relief as new inventory backs off in November

Condos dropped both year-over-year and from October in the average sale price category, 3.0% and 4.2% respectively. As corrections go, particularly when one considers the price growth, in say the last 10 years, condos remain a solid investment. This is however a snapshot in time that does favour buyers looking to get into the market or grow their real estate portfolio. 

New listings took a 34.5% drop compared to last month which saw some of the inventory get absorbed. This is a good thing for condos and is further reflected in active listings which also dropped from October by 12.3%. All the same, when it comes to the year-over-year numbers, November continued to be way up in 2020 compared to 2019 for new listings and active listings.

Condos may continue to face challenges over the next few months but all indications point to a turn-around by the second half of 2021 according to Benjamin Tal, the Deputy Chief Economist at CIBC. I've linked here the article for you to read ... 

That brings the November market update to a close. See you next month as we close out the year that was 2020!