Toronto Home Sales are up 16.5% in November 2016!
It is not surprising that the Toronto real estate market has seen a robust increase in home sales each year. Toronto Real Estate Board came out with their home sales report on December 2nd and have shown a reported 8,547 home sales through the MLS in November 2016, which represents a 16.5 per cent increase compared to same time last year. According to the data published, the “average home in the Toronto area cost $776,684 in November, up from $632,774 of November 2015, and $4,159 more than the average selling price from October of this year”. (TREB November Report) The Toronto real estate market as a whole, has witnessed higher sales and were up on a year-over-year basis for all major home types. It has been reported the strongest annual rates of sales growth were experienced for the townhouse and condominium apartment segments.
Home buying activity remained strong across all market segments in November 2016. However, many potential home buyers continued to be frustrated by the lack of listings, as annual sales growth once again outstripped growth in new listings. Seller’s market conditions translated into robust rates of price growth,” said Mr. Cerqua of the Toronto Real Estate Board.
“Recent policy initiatives seeking to address strong home price growth have focused on demand. Going forward, more emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types, especially in the low-rise market segments,” said Jason Mercer, TREB’s Director of Market Analysis.
Judging from the increase in sales, Toronto-area realtors say the numbers show that “more rigorous stress testing of mortgages and a small rise in interest rates isn’t discouraging market activity”. (Toronto Star, December 2, 2016). The new mortgage stress test really only affects about 10 per cent of the market,said Ann-Marie Lurie, chief economist with the board. It has been suggested that Ottawa and Queen’s Park might take more pointed action next year, based on this market activity. (TREB November Report)
The city of Toronto, in comparaision to other cities, has many positive factors to look forward to. Of the many factors influencing home prices – immigration, inter-provincial migration, U.S. economy, interest rates, the wealth effect of homes and the stock market — all of those are strongly positive for the home ownership market.
Although there was a slight year-over-year increase in new listings, active listings were down 36 per cent compared to November 2015. Durham Region, considered to be one of the most affordable areas for home buyers, also experienced the highest year-over-year per cent increase on the MLS home price index with 25.4 per cent growth.
November Toronto-area price gains
Durham — 25.4%
York — 24.81%
Halton — 21.5%
Peel — 21%
City of Toronto — 16.5 %
Source: MLS Home Price Index