A look back through the years…
As we come to the end of one of the most successful and busiest years in the Real Estate market Canada has ever seen, I’d like to look back at our market over the past three years; what has contributed to the sudden rise in housing prices and growth of foreign investors and what can we predict from 2016.
Average Residential Sale Price
Between the years of 2011 and 2014, the average sale price of a home in the Greater Toronto Area has increased by over $100,000. While 2015 isn’t quite over yet, we’ve already seen an overall increase of over 10%. In fact, this was the first year we saw the average price of a home in the 416 area code reach $1 million.
The question becomes, what has changed so much over the last few years? In the past, more modest homes were selling for thousands over their initial asking price. This led to buyers believing their homes were worth quite a bit more than their actual value and sellers being completely unaware of what type of home they could afford. By 2014, more realistic pricing took over, leading to a higher level of confidence in both buyers and sellers. Combine this with lower interest rates and a low Canadian dollar enticing foreign investors, and you will begin to understand the healthy state with of Canada’s Real Estate market.
2015 is still taking advantage of the more accurate pricing, consumer confidence and lower interest rates, but this year has had even more advantages than in the past. It was projected that Canada would see a $5 increase to its population this year. Immigration has given the market a massive push for 2015.
Projections for 2016
Mississauga is definitely the area to watch for 2016. With its proximity to Toronto and regular GO train service into the city, there is a level of convenience that comes with living in Mississauga. New condominiums and a blossoming downtown are attracting young, first-time buyers to this part of the GTA. Neighbourhoods such as Lorne Park and Port Credit are seeing more and more new luxury homes build up the areas, which will continue to entice wealthy buyers.
With the new Oakville hospital finally complete, I predict this will drive a lot of new buyers to the area. Oakville’s luxury market has always attracted buyers who are just as interested in the area s the homes themselves. With great schools, the lakefront and the new hospital, this market will continue to thrive.