TREB Market Watch December 2015
The majority of us saw this coming–With tight market conditions and the average detached home surpassing $1.1 Million, it should be no surprise that 2015 was a record-breaking year for the Toronto Real Estate Market. By November, we had already broken our last home sales record and by December, over 100,000 transactions were registered for the entire year, a first-time feat for the GTA. Toronto Real Estate Board President Mark Mclean announced that sales reached 4,945 in December, the second highest number of sales for the month. Overall, 101,299 transactions were made in 2015 according to Toronto MLS ®. This figure represented an impressive 9.2 per cent increase from 2014.
The average selling price for a home in Toronto surged nearly 10 per cent in 2015, reaching $622,217. In 2014, the average selling price paled in comparison at $566,624. All types of dwellings saw price growth last year; however, high demands low-rise segments of the market played a large role in overall price increases. “A relatively strong regional economy in the (Greater Toronto Area) coupled with low borrowing costs kept a record number of households — first-time buyers and existing homeowners alike — confident in their ability to purchase and pay for a home over the long term,” said Mark McLean, president of the board, in a release.
In Toronto’s very tight detached market, sales only climbed 1.7 per cent for the year, a percentage driven by supply shortages. Those market conditions helped drive the average price of a detached home to $1,047,483 — 12.6 per cent increase from a year ago.
Detached homes in the 905 suburbs proved to be just as sought after with the average one selling for $728,015 in 2015, up 12.1 per cent from a year ago.
2016 is off to a running start, possibly due to the number of buyers taking advantage of current buying rules before the minimum down payment increase goes into effect. Could 2016 be another record breaking year? Despite factors working against our favour, the Toronto Real Estate Board remains optimistic for the New Year and expects another prosperous year for the city. TREB is expected to release its predictions for 2016 at the end of January.