At the beginning of 2016, The Toronto Real Estate Board (“TREB”) outlook for the year pointed to a strong possibility of a second consecutive record year for home sales. This outlook was based, in part, on upbeat consumer survey results pointing to robust home buying intentions.
With Toronto recently having been named the best city to live in on a worldwide scale, Toronto is attracting many new residents from around the world, further driving real estate sale volumes and pricing.
The positive annual growth in sales was not mirrored on the listings front. The number of new listings entered into TREB’s MLS® System during March and the first quarter were down compared to the same period in 2015.
The supply of listings continues to aggravate many would-be home buyers. Toronto could have experienced even stronger sales growth if it had not been constrained by supply of listings, especially in the low-rise market segments. Jason Mercer, TREB’s Director of Market Analysis reported recently that the resulting strong competition between buyers has underpinned the double-digit rates of price growth experienced so far this year.
What’s going on in the Toronto Housing Market?
With our prevailing and forecasted low Canadian Dollar and mortgage interest rates, coupled with the increased popularity of Toronto on a worldwide scale, the Toronto Housing Market continues to be red hot. Foreign investment is pouring in from Western countries. As compared to other popular cities around the world, Toronto is still an affordable option for foreign investors and Canada is a safe place for their funds.
What are people looking for?