We are now well on our way into 2015 and so far the market has proven strong with no signs of weakening. Once again, we have seen an increase in both sales activity and sale price from January 2014. Sales activity is up 6.4% resulting in 4,355 transactions, while the average sale price has increased to $552,575, a 4.9% increase from $526,965 one year ago.
Transaction growth shows us overall there are an increasing amount of both sellers and buyers participating in real estate market. That being said, the amount of persons listing their homes on the market has yet to keep up with eager buyers – many of which are first homebuyers, resulting in a continued seller’s market.
"The January results represented good news on multiple fronts. First, strong sales growth suggests homebuyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs," said Mr. Etherington of TREB.
Although the market remains in the seller’s favour, buyer’s have also received even more motivation to buy as borrowing costs are anticipating a decrease since the Bank of Canada announced a drop in interest rates.
Find TREB’s full Market Watch at http://www.torontorealestateboard.com/market_news/market_watch/2015/mw1501.pdf