Posted 3.8.16 @ 0:0
The last year have brought in some jaw-dropping record sales, with 101,299 sales through Toronto Real Estate Board’s realtors alone but if we will be judging things by February 2016 GTA record breaking sales, then it seems that we can expect this year to be much better than the last.
February 2016 Toronto Real Estate News
TREB recently announced that February had a 21.1% in sales compared to last year, raking in 7,621 in sales as compared to 6,294. Take note, this figure even accounts for the extra day because this year’s a leap year!
Around 2/3 of the sales were from outside the city of Toronto where sales were recorded at 2,809 this year as compared to 2,352 from February 2015. As for average home prices, the figures are at an average of $719,843 in Toronto and at $665,100 for the remaining areas of the GTA.
Last year’s hottest real estate markets include Toronto and parts of southern Ontario, just a hairbreadth behind some parts of B.C.’s Lower Mainland region and Vancouver. As for Vancouver, realtors there have also announced last Wednesday that Vancouver sales have also reached a record for February, bringing in 36% more sales compared to the same month last year; a figure of 4,172 homes got sold.
A Shortage of Homes?
Analysts say that single detached homes are increasingly becoming a luxury item, more so for first-time homebuyers. Toronto real estate broker Pasalis states that the market is insanely competitive and that sales are off the charts, with people lining up behind 10 up to 20 other homebuyers just to get a chance at their desired homes this winter.
Another Toronto real estate specialist David Fleming says that the past few months has been the toughest for the market of single-family homes for buyers and good times for the sellers.
TREB states that detached Toronto homes averaged at $1,211,459 in February, a figure that’s 16.3% more than the same time period last year. It is clear that the 8.2% in listings are not enough to satiate the demand but what can be done when existing homeowners have no plans to move?
The sector that’s benefitting a lot are the foreign buyers because of the low Canadian dollar. Foreign buyers from Iran, China, or Saudi may have their mind set on spending a million, but once their U.S. dollars are converted to Canadian dollars, then they suddenly get $200,000 to $300,000 extra to either upgrade or spend on home furnishings. The foreign buyers are mostly immigrants or well-to-do parents of foreign students who are in Canada on temporary visas.
RBC senior economist Robert Hogue states that affordability does not seem to restrain buyers who are interested in the Vancouver and Toronto market. If any, the current prices and demand seem to further fan the flames of the already hot housing markets.
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