Toronto real estate achieved new home sale records for the second year in a row. A total of 113,133 sales were completed, a 11.8 per cent increase over 2015. By the end of the calendar year, Toronto recorded $82.5 billion in real estate dollar volume with residential properties spending an average 17 days on market. Toronto’s strong economy, low borrowing costs, and growing population drove the record numbers.
Annual home prices match the record-setting trend. According to the MLS home price index, average prices rose 17.3 per cent over the last 12 months. Toronto homebuyers spent an average of $729,922 on a residential property during 2016. The increase in home prices is attributed to the lack of listings. Active listings reached their lowest point in over a decade by the end of December. Total new listings were down by nearly 4 per cent.
“It is important to point out that the strong demand that we experienced in 2016 was very much domestic in nature. Only an estimated 4.9 per cent of GTA transactions, in which TREB Members acted on behalf of a buyer, involved a foreign purchaser. In the City of Toronto, the share of foreign buyers was five per cent,” said Toronto Real Estate Board President Larry Cerqua.
In the final month of 2016, Toronto Realtors sold 5,338 properties, an increase of 8.6 per cent for the year-over-year period. The average selling price of $730,472 was 20 per cent higher compared to December 2015. Average days on market dropped from 29 days to 20 days.
The luxury market witnessed a surge in buying activity throughout 2016. In the $2-million-plus market segment, 3,117 properties sold for all home types. A total of 4,326 residential properties closed in the $1.5-$1.9 million range.
Toronto homebuyers and sellers can expect the high demand to continue into the new year. With an average of 17 days on the market, having the right real estate agent to negotiate the best deal is essential. Trust in the experience of Barry Cohen Group to market your luxury property. Ask for a consultation now before the busy spring season.