After a record year, the Toronto Real Estate Market is expected to continue to experience strong growth with between 96,500 and 105,000 total home sales projected for the year.
Jason Mercer, the Director of Market Analysis for the Toronto Real Estate Board, said that, “Whether we see the second best year on record or a second consecutive record year will largely depend on the direction of borrowing costs and the availability of listings, particularly in the low rise market segments.”
He continued, “For most home buyers, at least some of their purchase price will be covered with a mortgage. However, the Ipsos Reid survey found that a very small share of intending buyers were planning on down payments of between five and 9.9 per cent. This suggests that only a small percentage of intending buyers will be impacted by the mortgage lending guideline changes announced by the Federal Government in December 2015.
Average home prices are expected to continue to increase, and are forecast to hit somewhere between $655,000 and $665,000 in 2016.
Sean Simpson, the Vice President of Ipsos Reid, said that, “Ipsos Reid’s recent survey of intending buyers found that 12 per cent of GTA households are very likely to purchase a home over the next year. First-time buyers accounted for approximately half of intending buyers. These results bolster the argument that people in Toronto and the surrounding regions continue to view home ownership as a solid long-term investment. This includes young people aged 18 to 34, who made up the majority of intending first-time buyers.”