TREB just announced a record year for home sales in the GTA. The number of sales for the whole year of 2015 was 101,299, which is a 9.2 per cent increase compared to 2014. The average selling price in 2015 was $622,217 - a 9.8 per cent increase compared to previous year.
"Home ownership is a quality long-term investment that families can live in while the value increases over time. A relatively strong regional economy in the GTA 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, Toronto Real Estate Board President.
"If the market had benefited from more listings, the 2015 sales total would have been greater. As it stands, we begin 2016 with a substantial amount of pent-up demand,"
These are exciting news from TREB, however we must couch it with net immigration numbers, which will probably increase with jobs being tight in the west due to the Oil Sands shutdown and negative resolution of the Keystone pipeline. We may well see large numbers of Ontarians who have been living outside the Province moving back to the GTA, looking for jobs.
It would be interesting to see what the TREB figures may look like with population growth in the GTA involved. That being said it was a record year for Toronto and us at the Torontoism Team.
Sales over $1 million surge in Toronto and Vancouver
According to Sotheby's International Realty Canada's report released on January 7th, 2016, the market for residential real estate over $1 million continued to thrive in GTA and Vancouver in 2015. The most significant sale highs were recorded in luxury real estate over $4 million.
GTA is still Canada's number one when it comes to sales of $1 million-plus real estate (condos, attached and detached homes).
Sales in the GTA, $1 million-plus real estate segment, 2015 Year- End Top-Tier Real Estate Report
In 2015, the top-tier residential real estate in the GTA recorded the strongest year-over-year-sales gains out of Canada's top cities, in a market, that is characterized by limited inventory, consumer confidence, pre-emptive and multiple offers, and sales above list price. A total number of 11,112 properties over $1 million were sold across the GTA, representing an increase of 48% in comparison to 2015, while luxury real estate sales over $4 million recorded a very significant 71% increase year-over-year.
According to SIRC's report, the GTA and Vancouver are expected to continue to lead the $1 million-plus real estate into 2016, "propelled by the low interest rates, below-national average unemployment levels, sustained international investment and immigration, and high levels of consumer confidence in the real estate market."
Canada has very strong property rights and is thought of as a safe home for money. At the same time the Canadian Dollar being so low, it automatically put Canadian property "ON SALE". Foreign money will find a great home here over the next few years. With communication being so global and unrest in many parts, existing Canadians will be under pressure to be welcoming and understanding of more diversity.
For years we have been a great social experiment of multi-culturalism in Canada. I welcome it but as we are seeing, in other countries, thoughts change when immigration and foreign investment rise. We must all realize that we are in a smaller world than we have ever been due to online access and media.
Title photo by Allen Lai