“A relatively strong regional economy, low unemployment and very low borrowing costs kept the demand for ownership housing strong in the GTA, as the region's population continued to grow in 2016,” TREB president Larry Cerqua said on January 5, as quoted by CBC News
The average selling price for 2016 as a whole grew by 17.3 per cent compared to the previous year, up to $729,922.
Alongside these factors, intensified competition due to the scarcity of active listings—which have reached their lowest levels in 15 years last month—is spurring the Toronto market’s continuous price growth.
“Total new listings for 2016 were down by almost four per cent,” TREB director of market analysis Jason Mercer said. “What we really need is more policy focus on issues impacting the lack of homes available for sale.”
Despite the tighter conditions, Toronto’s sales volume actually grew by 8.6 per cent year-over-year in December, up to 5,338 deals across all housing types.
For the entirety of 2016, TREB agents completed 113,133 transactions through the region’s MLS system, representing 11.8 per cent annual growth.
Toronto area home sales hit record high in 2016, average selling price soars
Canadian housing to become even more attractive to foreigners
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The average home price in the Greater Toronto Area increased by approximately 20 per cent year-over-year in December (up to $730,472), and the city’s real estate board attributed this development to the cumulative effects of various economic and demographic realities.