Posted 5.28.16 @ 0:0
The Toronto Real Estate Board recently shared April 2016’s real estate figures, and it showed that the average price of a Toronto home shot up 16.2% more compared to a similar period last year. That’s an average price increase of more than $100,000 in just a year!
$100,000 Increase in Home Prices
Back in April 2015, the average cost of owning a home in GTA is at $636,094, an already impressive figure considering that statistic includes townhouses and condos and not just single detached homes. This year, the average home price in GTA climbed up to $739,082, and it is still not showing signs of slowing down!
This increase is partly due to buyers preferring higher priced properties and bidding wars for highly desired properties. To date, sales actually went up by 7.4% last month even with the 16.2% price increase as compared to a similar month last year. This statistics data also reflects the current trend of homeowners taking advantage of low mortgage rates by moving up from their smaller detached or semi-detached homes into bigger higher-value properties, as shared by the director of market analysis for TREB, Jason Mercer.
Still Low on Listings
A perceived shortage of supply of homes is driving buyers to join in bidding wars or initiating a bully offer, transforming the average buyer into aggressive purchasers. This has been going on for quite a while now and is still not showing signs of slowing down in the near future, shares Mercer.
Finding a home that meets a family’s or an individual’s needs is also one of the factors why new listings get snatched up as soon as it becomes available in Toronto. Semi-detached homes have shown a 24% price increase - no doubt a product of more people wanting a semi-detached home but having to vie for the chance of owning one.
Mercer further shared that the lack of new listings for lower-priced homes is also a factor as to why people are purchasing more expensive ones. It is just that some land use policies are in effect and is partly why there is very little new build for low-cost real estate, add to that the fact that some homeowners are avoiding hefty land transfer tax by simply just holding on to their homes or not listing them for sale.
Prices Are Still Climbing Up
On the condo front, sales have increased 15%, with 2000 out of the 2,800 condos sold inside the city of Toronto. Concerns that there’s an over-supply of condos carry no bearing now since prices are actually climbing up, not going down.
A mere decade ago, the average price for a Toronto home is at just $351,941. Today, that figure has doubled and if recent and trends are to be any indication of what’s to come, then we can expect home prices to rise a considerable amount more before the year’s end.
Still looking for an available Oakville home? Stalk our listings often! Beautiful homes get snatched up so fast, perhaps it would be better to shoot us an email so we can give you a heads up should one that meets your needs comes our way? Contact us for details on how you can have a home in Oakville!