With 2015 drawing to a close it is time to take a look at the year ahead. What does the future hold for buyers and sellers next year? If only I had a crystal ball and could accurately reflect the future trends! Anyone that tells you they can is very misleading. To get an idea of what’s in store for the Canadian housing market in the coming year, let’s look back over the past 12 months.
The Canadian Housing Market in 2015
Sales through the first eleven months of 2015 amounted to 96,401. Sales year over year in November were up 14 percent. December is shaping up to be another record breaking year in Toronto for all types of home sales according to stats released by Toronto Real Estate Board (TREB). I can only assume that the December activity is continuing at such a strong pace due to the warmer weather. Usually the market takes a pause in December as people turn their attention to the holidays.
With many first time buyers looking for more affordable housing options, semi-detached, and towns continue to be a popular choice. Bidding wars continue in many neighbourhoods across the GTA as homeowners are anxious to get settled before the year end. As a result, prices are still on the upswing. The price per square foot of new condominiums are no exception. The average price per square foot in the new high-rise market went up 4% to $579 an increase of 74 % higher than a decade ago when prices hovered around $333 per square foot.
Closer to home, the average price for resale homes in Durham has risen 12.7% compared to the same time last year.
My predictions are the 2016 will continue to be another busy year in real estate. Despite low oil prices, a struggling dollar, and a sluggish manufacturing sector, some analysts say there is more room for Canadian home prices to grow in 2016 with Toronto and Vancouver posting increases of five to seven percent.
As we say goodbye to 2015, I would like to wish you the happiest of holidays and a healthy and prosperous 2016.