On October 5, 2016, Chris Sorensen wrote in Maclean's Magazine that "Canada's housing bubble is the economy's biggest risk - and its biggest driver." To those predicting a correction in the market, we're sorry to burst your bubble (pun intended) but the Toronto Real Estate Market continues to boom.
Exactly three months after Sorensen penned his article, the Toronto Real Estate Board (TREB) announced their year over year sales figures. The results? Everything - and we mean every data point - was up. Because we are working in the field every day, the continued market growth was no surprise to us; perhaps it was, though, to those who proclaim “It has to stop!” or wonder “When will it stop?”
For those who track market data, you will recall that in 2015, the number of home sales on record surpassed the 100,000 unit mark for the first time since 2008. In 2016, this number further increased by 11.8% (from 101,213 in 2015 to 113,133 units).
Also worth mentioning is the fact that condominiums are holding their own in terms of value, witnessing a 9.7% average price increase between 2015 and 2016. Total sales, year-over-year, are also up for condos at an impressive 20.3%. It appears those sky-high towers we discussed in a previous blog post will be purchased and Toronto's urban jungle filled.
Finally, we would be remiss if we didn't address the 2016 media storm around British Columbia's foreign buyers tax and the whirlwind of predictions made concerning its related impact on our Toronto market. What the data shows is clear: the strong demand experienced in Toronto throughout 2016 - and, ostensibly, continuing today - is very much domestically-driven. According to a TREB-commissioned IPSOS survey, only an estimated 4.9% of GTA transactions involved a foreign purchaser (in which TREB Members acted on behalf of the buyer).
Here at the OxleyRobert Team, we are already witnessing evidence of a strong market for Spring 2017. We will continue to track and share the latest market data and keep you "In the Know" with our current trend reports.