Real Estate Board 2016 Outlook

Real Estate Board 2016 Outlook

The Toronto Real Estate Board has published, for the first time, a comprehensive review of 2015 market activity, with an outlook for 2016, covering all aspects of the GTA (Greater Toronto Area) real estate market.

Watch John DiMichele, president of TREB, as he explains the inaugural Market Year in Review & Outlook report. There is a lot of data available in their publication, with forecasts for everything from suburban resale homes, to downtown condos. Two versions exist, one for realtors, and one for the public. Both were released on January 18, 2016.

Report Highlights

The report provides information on the following:

– after a record setting 2015, 2016 is predicted to be  a strong real estate market going forward

– house prices will continue to trend upward in 2016

– over 12% of the Greater Toronto Area population are planning on purchasing a home in the next 12 months

– a majority of buyers are planning on putting 10% per cent down or more on their purchase

– includes an extensive section on new home construction

– between 96,500 and 105, 000 home sales are expected to be reported through TREB’s MLS system in 2016.

– indepth analysis of the overall competitiveness of the Greater Toronto Area, and also the Golden Horseshoe Area, are provided

You can access the full report in PDF format, by clicking here.

 

 

June Sales Remain Strong

Record June Sales and Higher Prices in Toronto

June sales set records Toronto real estate

Real estate agents in the Greater Toronto Area reported 11,992 firm sales through the Toronto Real Estate Board’s MLS system in June,
2015. The June sales numbers reported represent a new record for the month of June for any year, and an 18.4 per cent increase over results in June, 2014.
The Greater Toronto area continues its strong economic growth with several factors contributing to a robust market in the many diverse local economic, ethnic and cultural bases that exist here. The GTA continues to receive worldwide acclaim as one of the best places to live and do business. As the population continues to grow, many people are taking advantage of the options that exist for home ownership in the area.

Average Sale Price up 12.3%

June sales prices were up strongly on a year over year basis in June, for all categories of housing types. The TREB MLS Home Price Benchmark increased by 8.9% per cent compared to June 2014. The average sale price increased by 12.3% per cent over the same period to$639,184.
Higher priced homes have accounted for a greater share of the total transactions in 2015 compared to last year. This is one of the primary reasons why the average selling price has increased at a
higher yearly rate than the MLS Composite Benchmark.
New listings edged upward a bit during 2015, as homeowners took notice of the incredibly strong growth in real estate prices, and are beginning to take advantage of large equity increases in their homes. Nevertheless, the June sales show that the yearly rate of sales growth continues to far exceed the overall growth in listings, meaning that there is still an imbalance with many willing and able buyers in the market who will continue to have difficulties finding a home that suits their preferences. As long as this imbalance in supply and demand continues, house prices will continue to edge ever higher.

Real Estate Market – Toronto

Record Breaking Real Estate Market in May, 2015

real estate market new homes
real estate market new homes

Local Toronto area real estate market records were shattered when the Toronto Real Estate Board reported 11,706 sales in the month of May, 2015, for sales activity processed through the TREB MLS system. Total sales were up by 6.3%  percent compared with the 11,013 sales that were reported in May, 2014.

The Toronto real estate market as a whole showed sales increases for all types of residential housing. There was a decrease in sales of detached homes reported in the city of Toronto, but this was more as a result of a shortage of listings, than anything else.
The record number of transactions in May, combined with a shortage in the number of homes available for sale, resulted in large price increases in all areas of the market. The Home Price Index (HPI) Composite Benchmark, a key metric that the real estate board follows,  was up by 8.9% percent compared to May, 2014.

Real Estate Market Average Price Up 11%

The average selling price for all types of homes in May, 2015 showed an increase of 11% percent over the previous year, reaching $649,599. There was a shift to higher priced, higher end homes, which further boosted average selling price.
Extremely tight market conditions, with detached homes, semi-detached homes, and both freehold and condominium townhomes showing the highest demand, resulted in surging prices throughout the Greater Toronto Area. No matter what part of the Toronto area, listings remained in short supply, and in the suburbs such as Mississauga, Brampton, and Oakville, there were bidding wars on many listings.

We predict that this frenetic real estate market activity will continue throughout the rest of 2015, barring any unforeseen shocks to interest rates or the economy in general. With more buyers than sellers in every housing type and price point, it would take several months of increased listings and fewer sales, to create a more balanced real estate market. Until that time, it seems the only way for real estate is up.

Real Estate Sales for April 2015

Monthly Real Estate Sales for April 2015

record real estate sales in April 2015
Record Real Estate Sales in April 2015

The Toronto Real Estate Board reported 11,303 real estate sales in April 2015. This was the highest sales result on record for the month of April and represented a 17 per cent increase in comparison to April, 2014. While sales increased strongly on a year over year basis, new MLS listings were up over the same period by a more modest five per cent.

Record Real Estate Sales

The record results for real estate sales in April clearly illustrate that a burgeoning number of Toronto area families view home ownership as a priority, high quality long-term investment. This is evidenced by the strong sales growth experienced here in Toronto and the surrounding regions for all major types of housing. First time buyers and existing homeowners remain very active in today’s market.
The overall average selling price, which is a total combined number for all real estate sale for all types of homes reported sold by Toronto area real estate agents in April 2015, was up by 10 per cent year over year to $635,932. The MLS® Home Price Index (HPI) composite benchmark, which estimates the price of a benchmark home with the same attributes from one period to the next, was up by 8.4 per cent during the same timeframe. The fact that average price growth outpaced growth for the MLS® HPI Composite Benchmark, suggests that a greater share of higher priced homes changed hands this year compared to last.

Single Family Homes Strong

No matter which indicator used, price growth in the Greater Toronto Area was strongest for low-rise home types. However, the better supplied highrise condo segment remained healthy as well, with price growth above the rate of inflation. Demand for home ownership was extremely high compared with the number of homes available for sale in April.

Going Forward

The market is not expected to change much as we move through the balance of the year. Until there is a sustained period during which listings grow at a faster pace than sales, annual rates of housing price growth will remain robust.