GTA housing demand will eclipse supply
January 2, 2020
Re/Max is bullish on the Greater Toronto Area (GTA) heading into 2020, forecasting a 6 per cent increase in average composite house prices from the $766,236 level of 2019. The city of Toronto saw 76,413 properties sold in 2019, up 12 per cent from 2018, the Re/Max annual outlook noted.
“While Toronto is experiencing its ‘busiest’ construction season ever, housing supply still falls short of the demands of the city’s rapidly growing population,” the real estate agency reported.
Cities such as Ottawa and Windsor are also seller’s markets, showing substantial year-over-year increases in average residential sale price at 11.7 and 11 per cent, respectively. This strong growth is expected to continue into 2020, with Ottawa’s new (but currently troubled) transit system impacting surrounding development. Windsor’s continued affordability will attract more young professionals to the area.
The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 per cent, from $378,517 in 2018 to $427,488 in 2019. Value-conscious consumers from the Greater Toronto Area are buying with many choosing to live in the region while commuting to Toronto.
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions still seeing double-digit gains,” said Christopher Alexander, Re/Max executive vice president and regional director for Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”