The real estate market in Toronto continues to perform well and surprises all the analysts again. In February 2016 there were 7,621 transactions reported. This result represents a 21.1 per cent increase in sales compared to February 2015. The number of new listings entered into TREB’s MLS® System was also up on a year over-year basis, but by a lesser 8.2 per cent. The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year. Even after accounting for the leap year day, sales were above the previous record for February set back in 2010. Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines coming into effect that require at least a 10 per cent down payment on the portion of purchase prices between $500,000 and $1,000,000. Seller’s market conditions continued throughout the GTA in February. Strong competition between buyers resulted in a healthy growth in selling prices. The average selling price was up by 14.9 per cent annually to $685,278. Recent polling conducted for TREB by Ipsos suggested that GTA households will remain upbeat about purchasing a home in 2016. Early sales results for January and February certainly support this view. With strong sales up against a constrained supply of listings, home prices continued to trend strongly upward. In 2016 I expect for the average price in Toronto to increase between 7% to 10% depending on the location. The market now is a strong sellers market as the supply of inventory is still limited. In the coming weeks and months we expect more listings to come on the market and more selection of homes for buyers. With it being a very competitive you absolutely need to ensure you have a strong experienced Realtor representing you. A Realtor who knows the pulse of the market and knows how to play the real estate game. Otherwise as a buyer you will have a very difficult time buying. For sellers, if you are planning a move this year now is a great time to look at preparing your home and getting it on the market.
As always if you are planning a move and would like to discuss your goals feel welcome to call me at 416-856-5408 or email me at firstname.lastname@example.org. Have a great March!
Click below to see the Toronto Real Estate Board Market Watch Video