Current MLS stats indicate an average house in GTA hit a new record in 2020 & priced of almost $930,000 | 4,000 new listings in GTA as of a current trend
TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) — The Canadian real estate market prices aren’t just fast growing by local standards. They’re growing fast by any given standard determined by any other country. This is mostly because of the influx of immigrants and the saturation of the big cities. Home sales recorded over Canadian MLS Systems did scale up by 12.6% with a total number reaching to 500,000 for year 2020, a new annual record. This has been the new world record set in amidst the pandemic.
The actual (not seasonally adjusted) national average home price was a record $607,280 in December 2020 and was up 17.1% from the same month last year. The new year brought us fewer than $100,000 residential listings on all Canadian MLS Systems, the lowest ever based on records going back three decades. This compared that to five years ago when there were a quarter of a million listings available for sale. Most definitely there is a high demand and low supply to the start of the year. This will only play out when we know the sales and price data as they populate this quarter of how many homes are available to buy in the months ahead. There was only 2.1 months of inventory on a national basis at the end of December 2020 – the lowest reading on record for this measure. At the local market level, 29 markets in Ontario were under one month of inventory at the end of December.
Interesting highlights from 2020 real estate industry include:
95,000+ sales were reported through TREB’s MLS® System – up by 8.4 per cent compared to 2019. This included the month of December, with 7,180 sales – a year-over-year increase of 64.5 per cent.
Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $900,000 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA.
After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.
Save Max has predicted, the gap between the supply and demand fuelled with record low interest rates in the Toronto Market would lead to a strong price growth and sales in the year 2021. Prices are projected to increase another 10% by August of this year. This is all based on current demand and the spring economic recovery. Canada’s third quarter GDP growth was 40%. Since there are promises made by the US to renew free trade which should are considered to be positive for Canada and Ontario/GTA exports. This in-turn will benefit businesses and create opportunities for which real estate is essential. The lack of supply of homes is making it difficult to find a home in GTA. At the moment, people are moving to cities such as Vaughan, Bradford, Newmarket, Aurora, Milton, Stouffville, Pickering and Whitby to gain affordable and profitable properties for the long run. In the long run, there may be a drop in prices by an average of 20% basis the market style, the industry is currently portraying. Fundamentals of housing cannot really make a concrete evaluation as the human market demand is an emotional call.
As far as Peel region is concerned, the average detached house price rose 42% in the 416 districts to an astonishing media of $1,475,758. Houses rose 58.5% in the 905-area code to a high of $1,175,753. This trend is expected to continue and in peel region where in shortage of supply combined with historically low interest rates will push the cash rich buyer to look for bigger properties. The resumption of the immigration will increase the ever-growing demand for the house. Brampton & Mississauga market will have prices that are expected to grow in double digit and demand is going to be more than the supply.
Factors that will influence 2021’s real estate market:
More demand than the in-stocked inventory of Houses especially in GTA
Changing demand for commercial spaces because companies are implementing Work From Home practices.
Investment and development strategies in real estate are now emerging as key investment strategies more so right now
Sparing home spaces now to gain in extra inflow of income has also become a huge aspect of housing and real estate as there is going to be an influx of immigrants into the country very soon.
About Save Max Group of Companies: Save Max Real Estate is one of the fastest growing brokerages and opened its first real estate office in Brampton in 2010. From making history in the field of real estate by achieving $100 million sales volume within 16 months of inception to achieving $4.8 billion sales volume and 9000 transactions until today, Save Max has always strived to stay true to its beliefs to deliver an exceptional real estate experience to all its valued clients.
The City of Brampton is home to Save Max and the company has had the opportunity to serve the residents and provide incomparable real estate services for past years and will keep doing the same in the future. Save Max is expanding and operating with 36 Franchisees all across Canada today.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
