2015 in Review: Toronto Real Estate Market
You might be interested in the most recent report from the Toronto Real Estate Board.
Record TREB MLS® Home Sales in 2015
TORONTO, January 6, 2016 –
The second best sales result on record for December capped off a record year for TREB MLS® home sales in the GTA. Toronto Real Estate Board President Mark McLean announced that there were 4,945 sales reported in December bringing the 2015 calendar year total to 101,299 – a substantial 9.2 per cent increase compared to 2014 as a whole.
Strong annual sales increases were experienced for all major home types last 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 Mr. McLean.
"If the market had benefitted 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," continued Mr. McLean.
The average selling price for 2015 as a whole was $622,217 – up 9.8 per cent compared to $566,624 in 2014. The MLS® HPI Composite Benchmark Price was up by a similar annual rate of 10 per cent in December.
GTA home price growth was driven by the low-rise segments of the market, but condominium apartment price growth was generally well-above the rate of inflation as well through 2015.
"TREB will release its official 2016 outlook later in January, but suffice to say that the demand for ownership housing is expected to remain very strong in 2016.
Despite stricter mortgage lending guidelines and the possibility of slightly higher borrowing costs, on average, there will be many buyers who remain upbeat on the purchase of ownership housing," said Jason Mercer, TREB's Director of Market Analysis.
The expectation remains high for 2016. The changes to the mortgage guidelines just took place in December, so really, there was not much time for any impact.
The excitement based on December seems unduly optimistic. There were 527 more sales in 2015 than in 2014. In 2015, there were 4,945, compared to 4,418 in 2014.
However, this past year there were 101,299 sales, an increase of 8,517 over the 92,782 sales that took place in 2014. That’s a 9.18% increase, and that is significant.
Unquestionably, there is still a good deal of “pent-up” demand, meaning, of course, that the elevated price structure will continue to have support.
Brian Madigan LL.B., Broker