Headshot of Toronto Regional Real Estate Board President Lisa Patel.

We’re guiding decisions for the largest purchase most people will make in their lifetime.

TRREB Members know what makes a house a home, and how businesses, transit and schools are critical to building a community — these go hand in hand with attracting people to the GTA. Determining what else drives our region’s economic stability — diversity, vibrancy and accessibility have played a large role — through and beyond COVID-19, is key.

Lisa Patel
President, Toronto Regional
Real Estate Board

The Key Facts:
2020 Market Year in Review

Resiliency in Action: 2020’s Housing Market

Total sales and sale prices increased

95,151 sales were reported through TRREB’s MLS® System, representing an 8.4% increase from 2019. The average selling price was $929,699, representing a 13.5% increase year over year.

A woman looking at a map on a laptop with red markers.
+13.5% selling price
+8.4% in sales

The Key Facts:
2020 Market Year in Review

Resiliency in Action: 2020’s Housing Market

Increased buyer competition for low-rise, detached housing

New listings for detached houses were actually down in 2020 while sales were up 15.1%. This means competition between detached home buyers increased substantially resulting in accelerating price growth.

+15.1% detached
housing sales
Three detached houses on a neighborhood street.

New condo listings soared compared to sales and prices

Condominium sales were down 5.5%, while new listings were up approximately one-third, causing market conditions to become much more balanced. The condominium apartment segment experienced the slowest pace of average price growth in 2020 at 7.1%, and were actually down year over year in the fourth quarter of 2020.

+7.1% condo prices
A high-rise apartment with balconies.
-5.5% condo sales

While COVID-19 presented a period of uncertainty, home buying intentions remain strong

The share of survey respondents who indicated they were likely to purchase a home to live in over the next year was 30% — in line with the 29% share reported in the fall 2019 and 2018 surveys.

30% of survey respondents
are likely to buy a
home in 2021
A man and women holding a set of keys hug.

Demand for mortgages stands unaffected

Similar to survey results from previous years, approximately 80% of likely home buyers will use a mortgage in the purchase of their next home.

80% of home buyers
intend to use
mortgages

Forecast: Home buying intentions will persist in 2021

Combined home sales reported through TRREB’s MLS® System for the GTA, south Simcoe County and Orangeville are expected to range between 100,000 and 110,000 in 2021.

View More Details
105k forecast for 2021
home sales
A mother and father sit on a couch lifting up their child and laughing, surrounded by open moving boxes.

2021 Outlook

Hear From TRREB's Chief Market Analyst, Jason Mercer, About Four Key Insights

2021 Market Outlook

Video Transcript

Pandemic Impact on Real Estate

Video Transcript

905 vs 416

Video Transcript

The Condo Story

Video Transcript
Headshot of His Worship, John Tory, Mayor of the City of Toronto.

Whether it is investing in important housing, transit and infrastructure projects — we know that in order to build a world-class city, we need to move forward on all these fronts.

It’s why we are moving forward with our HousingTO Action Plan with a goal of building 40,000 affordable housing units, including 18,000 supportive homes, 1,000 of which will be modular homes. It’s why we are moving forward with investments in our TTC, including Automated Transit Control and Rapid Bus Transit which will make the system more efficient so that people can get where they need to go quickly and reliably.

His Worship, John Tory
Mayor, City Of Toronto
City of Toronto Logo
Headshot of the Right and Honourable Prime Minister Justin Trudeau.

We know that the homes that we decide to settle in are more than just where we choose to reside; they are where we build our lives, raise our families and create cherished memories.

Lately, our homes have also served as makeshift office spaces, learning environments for those in school, and a place to social distance. With so much importance on a safe and reliable surrounding, no Canadian should be without somewhere to call home.

The Right Honourable Justin Trudeau
Prime Minister of Canada
PMO Office Logo
Headshot of the Honourable Steve Clark, Minister of Municipal Affairs & Housing, Province of Ontario.

Our government knows a strong housing market with the right mix of housing is vital to supporting the GTA’s growth and economic recovery — which is why we are committed to increasing housing supply in the region.

I want to thank the Toronto Regional Real Estate Board and your members for all you do, and for your ongoing advice and partnership. We will continue to work with you to help Ontarian's find homes that meet their needs and budgets and get our economy back on track.

The Honourable Steve Clark
Minister of Municipal Affairs & Housing,
Province of Ontario
Ontario Logo
Headshot of the Honourable Kinga Surma, Associate Minister of Transportation (GTA), Province of Ontario.

By 2046, about 9.5 million people are expected to call the Greater Toronto Area home. We recognize the need for better infrastructure to support this impending population growth.

That is why we are making a historic commitment to invest almost $143 billion into the province’s infrastructure over ten years. We also understand that we need to be bold and smart in how we build new complete communities and employment centres to support the region for the generations to come.

The Honourable Kinga Surma
Associate Minister of Transportation (GTA),
Province of Ontario
Ontario Logo

The Missing Middle

An Answer to Toronto’s Housing Shortages

UrbanStrategies logo
A sleek three-story building on a city street.

The greatest opportunity to support Toronto Region’s growth is increasing missing middle housing options in urban development.

Increasing missing middle housing means converting or building new development within existing, largely single-family neighbourhoods with slightly higher densities than those of the immediately adjacent housing.

A modern single-family home.

The majority of housing types built in recent decades were high-rise apartments or single-family homes — very little in the middle.

The large number of high-rise apartment buildings are due to high land and development costs. These tend to be smaller (very few have two or more bedrooms) and don’t suit family housing needs.

A mother, father and young daughter huddle around a smartphone, smiling.

The GTA is divided up into areas of either single-family neighborhoods or apartment neighborhoods.

Most municipalities restrict multiple unit development to a small part of their urban area. As a result, the region consists primarily of either single-family or apartment neighbourhoods.

A concrete backyard of a single-family home.

The solution is to explore relaxation of current prohibitions to allow additional units in what are now single-family units in other parts of the GTA.

Population decline in single-family neighbourhoods can be reversed with this focus, allowing population density to support the educational, social and retail amenities that help our communities thrive.

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Headshot of Toronto Regional Real Estate Board CEO, John DiMichele.

I am struck by how well TRREB Members have adapted to the challenges they face in this pandemic environment, and how they continue to help buyers and sellers achieve their goals.

This is a testament to their professionalism, and the relationships they foster with their clients make them the backbone of this industry. TRREB Members help drive economic activity that allows us to gauge the state of the real estate market year over year.

John DiMichele
CEO, Toronto Regional
Real Estate Board

The Canadian Home Ownership and Mortgage Landscape

Mortgage Professional's Canada Logo
A woman in business attire stands outside looking down at her phone.

Canadians’ desire to become homeowners is now stronger than ever.

23% of non-owners intend to buy their first home this year.

A man and woman wearing masks are handed a set of keys by another man wearing a mask.

The federal government coordinated an unprecedented response to an unprecedented situation.

  • The Bank of Canada reduced its overnight interest rate to 0.25% and took action to reduce real interest rates.
  • Canada Mortgage and Housing Corporation (CMHC) and the Office of the Superintendent of Financial Institutions (OSFI) programs provided capital relief to banks and lenders.
A person points out to another person holding a pen where to sign a document.

768,000: Peak number of mortgages in deferral in 2020

  • Many who took mortgage deferrals began voluntarily resuming payments as their anxiety about the pandemic and job security reduced.
  • While predictions about a "deferral cliff" were widespread, there has been no evidence of widespread mortgage delinquencies.
A smiling man signs a document as a smiling woman holds his arm.

Mortgage rates will remain near historic lows through much of the coming year and possibly beyond.

With mortgage deferral programs appearing to have wound down without large foreclosures required, the mortgage market will remain robust, with banks and lenders well positioned to continue to extend credit at low rates.

After an initial drop, there was a rebound in real estate activity this summer and fall.

With the exception of micro-condo units in very urban cores, almost every property type has seen strong appreciation. Demand for suitable housing is stronger than ever.

View More Details

Rental Demand Remained Strong in the Face of COVID-19

Substantial increase in condo apartment rentals

Despite the ups and downs the pandemic brought, the number of condominium apartment rental transactions reported through TRREB’s MLS® System in 2020 amounted to 41,164 — up 21% compared to 2019.

A couple wearing masks hold hands beside a man wearing a mask and holding a stack of papers.
+21% condo apartment
rental transactions

Rental Demand Remained Strong in the Face of COVID—19

Surge in number of units for rent

While growth in rental demand was very strong, the number of units listed for rent at some point during 2020 almost doubled compared to 2019.

2x more rental
listings
A woman sits on a couch looking at her phone, surrounded by stacks of moving boxes.

Increased rental inventory translated into lower prices

Increased rental inventory provided more negotiating power to tenants in 2020. By the fourth quarter, average one-and two-bedroom rents were down on a year over year basis by 16.6% and 14.6%, respectively.

A red and white “for rent” sign with a brick background.
-16.6% rents of average
one-bedroom
apartments
-14.6% rents of average
two-bedroom
apartments
A smiling young woman opening a front door to give a couple a tour.

New Home Sales Increased in 2020

Despite the challenges, total new homes sales grew more than 7% year over year in 2020.

The market saw overall sales grow by 5% to almost 38,000 homes, which is above the 10-year average and the best year reported since 2017.

altas group logo

Single-Family Homes

Over 16,000 single-family home sales are the new home story of the year, almost doubling from 2019 volumes.

  • 2020 marked the first year with over 10,000 sales since 2016.
  • Families sought more space for new lifestyles brought on by the pandemic, such as backyards, home offices and education space.
+79%
compared to 2019
(single-family homes)
Graph tracking sales for single—family homes and condominium apartments from 2015 to 2020. Graph tracking sales for single—family homes and condominium apartments from 2015 to 2020.
Expand
Condominium Apartment
Single—Family

905 Regions

Sales growth was stronger in the 905 — fuelled by single-family home activity.

York Region saw the biggest improvement in single-family home activity, both from a volume and percentage perspective, with sales up by 134%.

+134%
in the York Region
Graph comparing sales of single—family homes in the City of Toronto and the Durham, York, Peel and Halton Regions in October 2019 vs. October 2020
YTD NOV 2019
YTD NOV 2020

Benchmark Prices

Condo and single-family home prices rose.

Declining inventories and robust demand put upward pressure on the benchmark prices. For instance, the condominium price surpassed $1 million for the first time in September.

Condos hit
$1 Million
Graph tracking the difference in single-family home and condominium prices from January 2015 to January 2020. Graph tracking the difference in single-family home and condominium prices from January 2015 to January 2020.
Expand
Dollar Gap (SF Minus Apt)
Condominium Apartment
Single-Family

Condominium Buildings

Stability from recovering inventory levels and resale competition.

Looking ahead, prices are expected to stabilize, with better inventory levels, competition from resale markets and a near record number of condominiums completions through 2020 which will impact the 2021 market.

23,000
expected in 2020
Graph tracking number of condominium units that are in pre-construction, under construction and completed from 2015-2022.
Units in Pre—Construction Projects by Planned Occupancy Date
Units in Under Construction Projects by Planned Occupancy Date
Actual Completions/Delivered Units

Capital Market Activity Down Year Over Year in the GTA

During 2020’s global pandemic, total investment activity dropped 23%

Investors hope to see recovery in the second half of 2021 from growth in industrial and multi-family assets, and economic recovery as a result of the vaccine.

Altas group logo
The entrance to a blue glass building in a plaza.
-23% investment
activity

Capital Market Activity Down Year Over Year in the GTA

Pent-up demand in multi-family and residential land markets

As COVID-19 restrictions began to let up, investment activity was bolstered by steady performance in multi-family and residential land sectors, making up 12% and 24% of total year-to-date volume as of Q3 2020, respectively.

24% residential
12% multi-family
A woman looking down at her smartphone.

Industrial spaces to support e-commerce and delivery

As of Q3 2020, industrial transactions totalled $3.2 billion in the GTA, with strong demand for warehouse and distribution space to support e-commerce growth and consumer reliance on delivery and distribution of goods.

$3.2 billion industrial
transactions
Three carboard boxes with bar codes on a conveyor belt.

Increased office availability

The GTA office availability rate increased since the beginning of 2020, reaching 10.7% as of Q3 2020.

1.8% more available
offices

A surge in subletting

As of Q3 2020, 21.8% of available office area was sublet space, jumping from 16.9% in the previous quarter and 16.0% in the same quarter in 2019.

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An open-concept office space with busy office workers.
+21.8% surge in
subletters