As 2014 comes to a halt, what has become of the Greater Toronto Area Housing Market? Same as what we blogged about in November, it seems that there is indeed no slowing down in the rise of home prices in the GTA and it couldn’t be more true as the year ends. By the end of November 2014, sales hit a record of 88,462 transactions, just a few transactions away from 2007’s record high of 93,200 homes. Is 2014’s report going to be a new record?
Toronto’s Bidding Wars
If any of you are following the trends in Canada’s housing market, Toronto and Vancouver have the highest increase in both home prices and demand, with two-storey single-family homes being more marketable as ever. This demand fueled up the increase of prices of the average GTA home by as much as 8.4%.
Real estate experts says that homes located in prime areas, such as those close to parks or lakeshores are only expected to get pricier as more and more buyers are willing to pay the price; and who wouldn’t?
There are reports of homes going for as much as $400,000 above the asking price with home sellers getting as much as 22 serious offers for a beautiful luxury home. It is indeed a bidding war for the available homes as new listings drop by 5.3% with the holidays and winter.
The Ever Increasing Demand
Where did all these demand come from? Partly responsible is the 2008 recession, which caused people to hang on to their homes for fear or worry of not being able to find a better deal. This listing shortage is likely to continue until 2015, as stated by TREB’s director of market analysis Jason Mercer via telephone interview. The demand is not just for Toronto’s most sought after properties but also for homes in surrounding areas like Halton, Durham, and York.
Mercer further states that the current seller’s market condition will be reflected next year, with strong price growth as the norm. As of a few weeks ago, about 3.5 month’s worth of inventory is available for Toronto, which is the norm. Compare that to the national norm of 6 months worth of inventory for the same period. In fact, in some districts of Toronto, the inventory is as low as 2 month’s worth. No wonder house prices are surging up.
In November 2014, about 6,519 condos and houses all over the GTA were sold, an increase of 2.6% from 2013’s November sales record of 6,354. With these numbers, the record is expected to surpass the 2007 record of 93,200 homes sold.
Condo Sales On The Rise
But why the increase in condo sales as well when people are looking for single-family homes? It’s simple, with the rise of home prices and demand for it, more and more families are realising that a single-family home might be beyond their budget so they then turn to buying condos instead. Just in November, the condo sales rose up 10.3% with properties getting multiple serious bids before getting sold.
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