I have just put together some highlights of this great report for the ones like you who do not really have the time to scroll through all the 73 pages
What happened in 2015 ?
- Record sales 101,299 , 9.2 % increase compared to 2014
- The average sale price in 2015 was $622,217 – up by 9.8% compared to 2014
Condo prices in the GTA were up 4.7 % in December, more than double the rate of inflation.
- Unemployment and borrowing costs remained low, which boosted consumer confidence.
- GTA population grew by approximately 100,000 people (more than 35,000
- Negotiated mortgage rates between 2.0% and 2.99 %
- 37 % of all transactions in Toronto, and 63 % of deals taking place in the rest of GTA
- 47% of the transactions in Toronto were condos, a 10% increase in 10 years –
- 88% of the transactions outside of Toronto were low rise type of homes
- Condominium apartments represent an important and desirable housing option for many households in the GTA, especially in Toronto
- Many investors, with a long-term investment horizon, bought condos and chose to rent their units
- Vacancy rates for condominium apartment rental units remain below two per cent, good rental market
Who were the buyers ?
- 53% were first time home buyers
- How long have the buyers lived in their previous home before moving? 10 years
- Those aged 18 to 34 have been in their current home for 4 years, on average, whereas those aged 55 years or older have been in their current home for 19 years on average.
Economic outlook for 2016
Looks like 2016 will be an other amazing year for the GTA real estate market.
- Why? Because of Consumer confidence will remain strong
- Economy in GTA will outperform Canadian economy as a whole because of diversity and not much dependability on oil prices
- A good real estate market brings a lot of money in the renovation industry (on average home buyers planned to spend $21,625 on their renovations, 11% as a whole planned to spend more than $50,000.Renovation expenditures outside of Toronto are higher than in Toronto
- Population in the Greater Golden Horseshoe is expected to grow by about 130,000 people every year until 2041, with the highest growth in GTA .
- Low Canadian dollar will increase exports to areas south of border
- Unemployment rates will remain in line with 2015
- Borrowing cost will remain low
- We might see a 20-30 basis points increase in bond yields in 2016 which might trigger an increase in the 5 year fixed mortgage rate ( some lenders have already increased fixed mortgage rates early January 2016 )
- New mortgage rules being implemented February 15, regarding down payment for new insured mortgages will have a minimal impact on the housing market as very few buyers will be impacted by these rules. As of February 15, 2016, the minimum down payment for new insured mortgages will increase from 5% cent to 10% for the portion of the house price greater than $500,000 and less than $1,000,000 , looks like not too many households will be affected, according to the survey
Buyers preferences for 2016 :
- 60% will buy resale, 40% new construction
New construction will be less affordable because of high increase in development charges. Looks like a builder needs to deal with 45 government entities in order to be able to start building new homes. This is what makes development charges so high, and those are passed on to the new homes buyers.
- Popular types of home to be purchased : Single detached ( buyers age group 35-54 ) followed by condo apartments ( young people and retired people looking to downsize .
Do You have any questions or need assistance ?
Are you planning on buying/selling or investing this year, I am more than happy to assist you with my professional advise and high standard services. Call me today.
Would you like the full report, please see attached link