Real Estate Market Watch Report for February 2016.
Saturday Mar 05th, 2016Share
The numbers for February 2016 are in! After strong start in January, the shortest month of the year had once again brought us the record prices even taking into the consideration new mortgage rules effective as of February 15, 2016: mandatory 10% down payment for the properties above $500,000.
So here are the results*: GTA total sales were 7,621 (21.1% up in comparison with February 2015). The average selling price was $685, 278 (14.9% up in comparison with February 2015).But let’s forget about 2015 because the annual increase in prices is not as fascinating as the monthly increase. In the York Region(Aurora, East Gwillimbury, Georgina, Georgina Islands, King, Markham, Newmarket, Vaughan, Richmond Hill, Whitchurch-Stouffville) the average selling price in February 2016 was $859,589 which is 5.81% higher than in January 2016. I’m choosing to concentrate on GTA because most of my first-time buyers are forced out of Toronto real estate market by the extremely high prices and double land transfer tax.
These increases should not be as surprising as some might think because thedemand from buyers once again over-exceeded supply of properties on the market. Strong competition among buyers had resulted in the bidding wars for existing properties. Speaking from my personal experience, I had shown several properties where the number of prospective buyers viewing a particular property had been incredibly high (in one case more than 40). Most of the properties I’ve shown to my clients generated at least 5 offers and were sold for at least 10% higher than the asking/listing price. While these are incredibly good news for the sellers, the buyers, especially first-time buyers, are feeling the pain of losing the homes of their dreams.
Year-over-year and month-over-month comparisons could put some doomsayers into the cautious mode and further strengthen their pessimistic viewpoints about GTA real estate market. However, as long as the demand for existing properties (especially detached and semi-detached) will continue outstripping the supply, the prices will persist on going up. Despite any new tightening mortgage rules, changes in interest rates and/or any other changes affecting the real estate market.
Thank you for reading and your comments will be highly appreciated.