TREB: Strong start to 2015
With Calgary and the price of oil slumping, the Greater Toronto Market seems to have not missed a beat as year-to-year sales, and home prices continued to rise. The number of transactions in January 2015 are up 6.1%, while new listings have increased 9.5%. The average home price increased to $552,575, representing a 4.9% increase over January 2014.
TREB’s Director of Market Analysis, Jason Mercer, remarked: “Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well.”
Many analysts had predicted that the Greater Toronto Area (GTA) market would be a benefactor of the recent rate decreases, along with slump in oil. The growth in transactions resulted mainly from sales occurring outside the City of Toronto. The City of Toronto itself saw a 2% decline in home sales.
“The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs,” said TREB President, Paul Etherington.
While the GTA enjoys a booming market, Edmonton and Calgary have seem to fallen to new lows, as the number of listings go up, and transactions go down.
For more details on each GTA jurisdiction, see below: