No one was suprised when TREB President Larry Cerqua announced that 2016 was a record year for home sales in the Greater Toronto Area. GTA Realtors reported 113,133 sales, which is an 11.8 per cent increase compared to sales in 2015. In December 2016, 5,338 properties have been sold – up by 8.6 per cent in a year-over-year comparison.
The condominium segment experienced a 19.5 per cent increase in December 2016 compared to the year before, and the strongest annual rate of sales growth for the whole 2016 was also recorded in the condominium segment. It is obvious that the demand has shifted from freehold to condos, due to low inventory and higher prices in the freehold segment.
The average selling price was $729,922, up by 17.3 per cent compared to 2015. The average price of a condo in the 416 area in December 2016 was $466,592 which is a 16.6 per cent increase compared to December 2015. Detached homes in the 416 area, with the average selling price of $1,286,605 in December 2016, experienced a price increase of 23.7 per cent compared to December 2015.
The strong price growth throughout 2016 can be attributed to the low inventory Toronto has been experiencing the whole year. New listings for 2016 were down by almost four per cent and the active listings at the end of December were at their lowest point in a decade-and-a-half.
"If we want to see a sustained moderation in the pace of price growth, what we really need is more policy focus on issues impacting the lack of homes available for sale,” said Jason Mercer, TREB’s Director of Market Analysis.
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