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Taken from the TREB Year in Review Report 

 

Greater Toronto Area (GTA) households continue to see home ownership as an affordable, quality, long-term investment as evidenced by the record home sales reported through TREB’s MLS® System in 2015. Both low-rise and condominium apartment prices increased on a year-over-year basis, as measured by the MLS® Home Price Index and the average selling price. Seller’s market conditions resulted in high single-digit or low double-digit annual rates of price growth for low-rise homes throughout 2015. The better supplied condominium apartment market experienced more moderate single-digit annual price increases, but price growth in this market segment still outpaced inflation. A healthy regional economy along with historically low borrowing costs spurred demand for ownership housing in 2015. The majority of recent home buyers took advantage of competitive lending market conditions to receive substantial discounts off posted rates. A very small percentage of recent home buyers put down between 5 and 9.9 per cent toward the purchase of their new home. Finally, the economy benefited from the rise in transactions, which stimulated an additional $5.5 billion in spending. 2016: HOME SALES WILL REMAIN STRONG Home ownership demand will remain strong in 2016, with TREB MLS® home sales amounting to between 96,500 and 105,000, depending on the direction of borrowing costs and the availability of listings. A relatively strong GTA economy will keep the unemployment rate low and result in moderate income growth. Even if borrowing costs increase alongside stricter lending guidelines, pent-up demand carried over from 2015, especially for lowrise home types, will ensure that many willing buyers remain in the marketplace. We will continue to experience seller’s market conditions in 2016, but despite the tight market, price growth will be mitigated to a certain degree by the lending preapproval process and federal lending guidelines. The average selling price will range between $655,000 and $665,000

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