Judging from the January 2017 results, released by the Toronto Real Estate Board (TREB), government measures to curb demand haven’t yet impacted GTA buyers. According to TREB, “January 2017 picked up where 2016 left off,” with increased sales, declining new listings and an average price increase of more than 20%.
It seems a government mandated “stress test,” designed to ensure new buyers can afford their homes when interest rates rise, didn’t dampen overall demand: Sales were 5,188, up 11.8% over January 2016, and the average price increased 22.3% to $770,745.
New listings dropped by 17.6% year-over-year from 8,906 in January 2016 to 7,338 last month. Condo apartment sales boomed – up by 26.8% in the 416 area and 26.5% in 905 – compared to a decline in sales of semi-detached properties in both Toronto and the GTA, and in detached homes in the City.
The overall price of a detached home reached the million-dollar mark ($1,068,670): In Toronto it now stands at $1,336,640; in the rest of the GTA it’s $999,102.
A recent home buyers’ survey conducted for TREB by Ipsos indicates that new buyers are still optimistic about home ownership in 2017 – in greater numbers than in the previous year’s survey.
And while affordability remains a concern, can these new buyers even hope to find their dream home, given the increasingly tight inventory situation? As we move towards spring buying season, that is the question.
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