As we reach the end of 2016, it comes as no surprise that real estate in Toronto has sky-rocketed in pricing over the past year.
Each month, numbers were going up in terms of costs, yet housing supplies continued to decline. This resulted in the GTA housing costs escalating to unprecedented levels in November, according to the Building Industry and Land Development (BILD).
— BILD (@bildgta) December 22, 2016
Real estate in the city is displaying the classic signs of supply and demand. Housing supplied have decreased dramatically over the past ten years. In November 2006 there were 31,150 new homes available for sale. In 2016 there were 15,184 new homes for sale. Last month’s numbers almost matched the reported record lows back in August, according to the BILD.
“Total available inventory in November was the lowest November level we have seen since we first started to track this data in 2000,” said Patricia Arsenault, Executive Vice President of Research Consulting Services at Altus Data Solution, BILD’s official source for new home market intelligence.
And as the home numbers dropped, the price for detached homes in the GTA peaked at over $1.24 million in November, up 27 per cent from last year. BILD states that since the start of 2016 detached homes have gone up by more than $258,000.
Meanwhile, the average price for low-rise homes increased by 20 per cent over the year, with the cost averaging $977,890.
Let’s hope these trends change in the new year.
- Average home price in Canada surpasses $500,000 for first time
- Demand for luxury homes in Toronto has gone up more than 85% in 2016
- Hamilton is now the hottest real estate market in Canada