Wow - the statistics are in revealing another banner year for Toronto real estate, with prices surging an average of 20 percent!
Of particular note, the freehold market in the 416 area code of Toronto (the original City of Toronto) experienced a significant constriction on supply, while its condominium market jumped almost 20 percent in volume traded (basically, as more condos are completed it fuels more sales). Interestingly, the freehold market in the 905 area code increased in value more than the already pricey 416 area code - while the condominium market in 416 increased only just slightly more in value than 905.
What does this signal? As the Toronto freehold market supply tightens from the central core out, it's pushing Buyers limited by affordability farther afield geographically, fueling the 905 escalation in values.
Here's the latest real estate press release from the Toronto Real Estate Board for December 2016:
January 5, 2017 -- Toronto Real Estate Board President Larry Cerqua announced that 2016 was a second consecutive record year for home sales. Greater Toronto Area REALTORS® reported 113,133 home sales through TREB's MLS® System – up by 11.8 per cent compared to 2015. The calendar year 2016 result included 5,338 sales in December – an annual increase of 8.6 per cent.
The strongest annual rate of sales growth in 2016 was experienced for condominium apartments followed by detached homes.
"A relatively strong regional economy, low unemployment and very low borrowing costs kept the demand for ownership housing strong in the GTA, as the region's population continued to grow in 2016," said Mr. Cerqua.
The annual rate of growth for the MLS® Home Price Index (HPI) in the TREB market area accelerated throughout 2016 – from 10.7 per cent in January 2016 to 21 per cent in December 2016. The overall average selling price for calendar year 2016 was $729,922 – up 17.3 per cent compared to 2015. The pace of the annual rate of growth for the average selling price also picked up throughout the year, including a climb of 20 per cent in December.
"Price growth accelerated throughout 2016 as the supply of listings remained very constrained. Active listings at the end of December were at their lowest point in a decade-and-a-half. Total new listings for 2016 were down by almost four per cent. In 2016, we saw policy changes and policy debates pointed at the demand side of the market. If we want to see a sustained moderation in the pace of price growth, what we really need is more policy focus on issues impacting the lack of homes available for sale," said Jason Mercer, TREB's Director of Market Analysis.
If you're curious to see the price and transaction breakdowns by housing type and geographical area, here's the complete set of December 2016 stats from TREB!
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