The GTA Real Estate Market Remains As Strong As Ever!
At this time of year when the cool winds of fall are embraced, the GTA real estate market remains as strong as ever. By all accounts 2016 has been very kind to home owners with the average selling price year to date being $763K across all markets.
As the fall rolls in, the market remains firmly planted in the growth column. The condo segment is staying on top of the curve with the average selling price in Sept being reported as $422K. Detached homes are up 10% year over year and this is mainly attributed to growing demand in the Mississauga, Oakville and Burlington markets.
Recently the Real Estate Board reported 21.1% growth to date in 2016 versus the same time period last year. As 2016 is coming to a close it is clear that the real estate market is showing no signs of pumping the breaks.
The ratio of supply and demand continues to skew in favour of the sellers. The new listings numbers have slightly increased but are far below the strong demand in all GTA markets. Until the ratio of supply and demand evens out, the continued growth is expected to continue through to the end of the year. November and December will be watched closely to observe what effects, if any, will result from the newly announced mortgage policy changes.
The Vancouver market is experiencing record low foreign investment numbers following the introduction of the 15% foreign buyers tax earlier this year. Over the summer the foreign investment percentages in the B.C. market plunged to a mere 0.7% from a healthy 16.5% the year prior. In the month of August there was a 97% drop in home purchases from foreign investors compared to the same time the previous year. The B.C. Premier Christy Clark is reported to be pleased with the drop of foreign investment hoping more homes will now be purchased by locals.
Foreign investors previously interested in Vancouver are now exploring alternative markets and the GTA is on the top of that list. A serge of foreign investor dollars into the market will only help drive growth up even further. All signs point to the GTA real estate market remaining the place to invest as part of long term growth strategy, both today and going forward.