Average Sale Price Remains Hot in December | Market Watch
Posted By: Rachel Kavanagh
January 7, 2020
Average Sale Price Remains Hot in December – 2019 has concluded with December producing 4,399 transactions, a 17.4% year-over-year. The total amount of sales reported for 2019 was 87,825, a 12.6% increase when compared to the 2018 amount of 78,015. Overall, 2019’s sales were in line with the average sales for the past 12 years.
The average sale price for all home types in the GTA during December was $837,788, a significant increase of 11.9% over 2018. The year ended with the average sale price for all home types in the GTA at $819,319. This was a 4% increase over 2018’s result of $787,856. From the beginning of the year, the market witnessed a $31,463 increase to the average sale price, showing that many buyers left the sidelines and moved back into the market.
In Markham, the average sale price for a detached home decreased by 0.6% to $1,338,963, making it virtually flat month over month. In Stouffville, the average sale price for a detached home increased by 2% to $1,068,149.
TREB had a strong December when compared to the same period last year. All major market segments witnessed year over year increases for transactions and the average sale price. In the 905-area code detached and townhomes reported the largest increase in sales. Detached homes received the largest year over year improvement in sales by 23%, while townhouses were second with a 21.1% increase in sales. As for the average sale price, the condominium segment heeded the largest increase at 11.9% year-over-year, followed by townhouses at 11.1%.
In the 416-area code, it was interesting to see that the largest increase in sales and average sale price year over year was the detached home segment. Detached homes in the 416 reported a 38% increase in sales and 19.5% in the average sale price.
The market continued to tighten in December with new and active listings both being down year over year. Active listings were down by 35.2%, while new listings were down by 18.1%. It is no surprise that this restriction has put pressure on the average sale price, causing it to increase.
The luxury market in York Region finished with a total of 86 transactions of $3 million or more. In Markham, there have been 22 sales of luxury detached homes with an average sale price of $3,481,303 while 33 luxury homes continue to be available for purchase. In Stouffville, there has only been 1 sale over $3 million, while 6 properties remain available on the market.
What Does This All Mean?
Throughout 2019, as each month passed, the market became stronger and healthier. Many sellers took advantage as the market got stronger having their home listed, while buyers were busy purchasing homes during the second half of 2019. As we move forward into 2020, supply will be an important topic of conversation. Should the trend of available listings remain low, demand will increase, along with sale prices.
External variables such as the interest rates and the Canadian and global economy will be important factors to watch in 2020. Should any of these factors take a positive or negative spin, they could indirectly impact the real estate market.
Overall, 2020 is poised to have stronger sales and price growth. If you are considering purchasing a home, early 2020 might be the best time to do so.
Have a Happy and Prosperous New Year!
* Average Sale Price Remains Hot in December written by Benczik Team Realty