GTA sees a record number of home sales in 2015
By Lucas on Jan 06, 2016
The Toronto Real Estate Board has released its December 2015 and annual total sales figures, announcing a record number of transactions reported through the MLS system in the Greater Toronto Area (GTA).
Last December was the second best December on record with 4,945 sales, which capped off a record year of a total 101,299 sales. This is a 9.2% year-over-year increase.
"Home ownership is a quality long-term investment that families can live in while the value increases over time,” says TREB President Mark McLean. “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."
McLean continued: "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.”
The overall average selling price of a home in the GTA was $622,217, which is a 9.8% increase compared to 2014’s average of $566,624. The boost in average price was largely influenced by the low-rise market, but the high-rise market also saw price growth greater than the rate of inflation.
"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,” explains Jason Mercer, TREB's Director of Market Analysis. “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.”
The largest year-over-year jump in sales went to condo apartments in the 905 region with a 15% increase to 7,327 sales. The greatest rise is average price was unsurprisingly for a detached home in the 416 region, rising 12.6% to close off the year at $1,047,483.
Will RBC’s decision to hike mortgage interest rates affect homebuying in the GTA or will the demand for ownership housing remain strong throughout the year?
