Year in Review
The average residential sale price rose by 10% in the Greater Toronto Area in 2015 from 2014, to approximately $622,150. As demand shows no signs of waning, the strong market will likely continue and we can expect 2016 prices to appreciate by 5%.
Last year, new Canadians and foreign investors drove the markets in Toronto, Vancouver and Montreal. These buyers were attracted to Canada’s stable economy and weak Canadian dollar.
That Was Then
2016 has just begun and things are looking a little different. The real estate gurus predicted the GTA market would remain strong and increase in price by 5%. However, that was before this month’s global turmoil. I’m not suggesting the market will not perform as indicated, but we can’t simply turn a blind eye to global forces. The decline of the Chinese Yuan has impacted our economy and added volatility to the stock market. As well, global markets are struggling with the steeper than expected decline of oil. How will these factors impact our real estate market? No one really knows. We could see an uptick if investors deem real estate to be a safe haven for their money. Conversely, people may decide to sit on their money as they did through the 2008/2009 recession.
Frankly, to make a prediction about the real estate market for the coming year is difficult. What I can tell you is that demand for lower-priced homes is high – and that includes anything under $1.5MM. Why? Because of supply and demand. Does this sound familiar? This story hasn’t changed from last year, and this is why we continue to see multiple offers on properties priced in the lower ranges.
Our real estate market has weathered many storms in the past 27 years. I know this because I’ve been an agent since 1989. In this time I’ve come to know this to be true: Toronto is and will always be a great city in which to live. The world loves our country and our city. Let’s stay positive and look forward to a prosperous year for our great country.
