Homes are getting more expensive, and that’s a fact.
In the GTA, the average home price has gone up by 22 per cent compared to last January, according to the latest report by the Toronto Real Estate Board (TREB). The average cost for a home was just over $630,00 in 2016, compared to January’s skyrocketing average of $770,745.
While January is often known as the cheapest month to purchase a home, there was no signs of the market slowing down this time around. January picked up where 2016 left off, TREB reported, and sales were up on a year-over-year basis while the number of new listings was down by double-digit annual rates for most major home types.
“As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory,” said TREB President Larry Cerqua, in a press release.
And because of the short supply and high demand, the number of home sales continues to rise with the price. TREB reported 5,188 residential transactions through in January 2017, which is up by 11.8 per cent compared to 4,640 sales reported in January 2016.
This year, the rate of sales growth were higher for condominium apartments than for low-rise homes.
Earlier this week, TREB predicted housing costs will continue rising throughout the year. TREB is forecasting the average home selling price will be $825,000, a difference of almost $100,000 compared to 2016’s average selling price of $729,922.
Looks like 2017 will continue to be a seller’s market.