Consumer confidence continues to grow and strengthen in the Greater Toronto Area.
Canada has seen one of its best summer seasons in the Real Estate market this year. In July alone, the GTA saw an over 9,000 homes sell, which is an eight per cent increase from the same month in 2014. Condo sales in particular soared to the top of the charts seeing an overall increase in sales of over 14 per cent.
The number of sales isn’t the only statistic going up in 2015. The average sale price of a home in the GTA for the month of July was $609,236, which is the highest average on record. This is a 10 per cent increase from 2014. This gives fuel to my predication that Oakville homes will hit the million dollar average by year’s end.
The main factor contributing to this overall increase is consumer confidence. The Ontario Real EState Association recently conducted a study and found that 66 per cent of GTA residents describe their current residential real estate market as “favourable.” Cities in the 905 area code, including Burlington, Oakville and Mississauga were the most satisfied with their city’s current market according to the research.
The GTA isn’t the only city in Canada experiencing major success in the market either; Vancouver is also having an excellent year so far. Sales for July are up 30 per cent from 2014 and the average price of a detached home within the city is at $1,141,800, which is 13 per cent higher than last year.
I predict we will see continued, steady growth in the market for the remainder of 2015 and well into 2016.
Another contributing factor to the increase we’ve seen in these numbers is the recent plunge in the Chinese stock market. China saw its market drop eight per cent on August 24th, which has led to serious insecurity in Chinese investors. They have now turned real estate which still remains a safe investment for them, especially with the Canadian dollar being depreciated at the moment.
With interest rates world wide remaining historically low, and this positive leap in consumer confidence, I predict we will see continued steady growth in the market for the remainder of 2015 and well into 2016. In face, the same research done by the Ontario Real Estate Association found that 46 per cent of GTA residents predict next year will be an even stronger year for the market.