Monthly resale housing figures show a strong start for 2016

The Toronto Real Estate Board (TREB) released its monthly resale housing figures for January 2016, announcing that the Greater Toronto Area’s (GTA) housing market is off to a strong start for this year.

There were 4,672 sales in the GTA’s resale market last month, which is 8.2% higher than January 2015. “It is clear that the handoff from 2015 to 2016 was a strong one,” says TREB President Mark McLean. “This is not surprising given that recent polling conducted for TREB by Ipsos suggested 12% of GTA households were seriously considering the purchase of a home in 2016. Buying intentions are strong for this year as households continue to see home ownership as an affordable long-term investment.”

The average selling price of a home in the GTA’s resale market went up by 14.1%. TREB attributes the aggressive growth rate to the strong demand for high-end detached homes in areas surrounding the City of Toronto.

There were 1,699 sales in the 416 region, and the average selling price was $636,728. In the 905, there were 2,973 sales, and the average selling price was $627,871. It’s interesting that the averages for the 416 and 905 are both in the low $600,000s. This could mean that there are affordable options for housing no matter where you look in the GTA!

“Market conditions in January were tighter compared to a year earlier, with an annual increase in sales up against a decline in listings,” explains Jason Mercer, TREB’s Director of Market Analysis. “This is why growth in the MLS® HPI benchmarks continued to be strong, especially for singles, semis and townhouses, where there has been a persistent lack of inventory.”

The average selling price for a detached home in the 416 sits above $1 million at $1,061,789, which is an 11.6% year-over-year increase. While the average price for a detached home in the 905 is much lower at $783,565, it’s important to note that this is 20.9% jump from last year!

Does a strong January mean a strong year? Time will tell.