Low inventory across all housing types in the GTA have pushed price growth into the double digits, since 2015. This post will outline the price growth, factors that are driving up the price and a theory of one of the reasons why we have a lack of inventory.
As of April 2016, low supply and high demand has pushed housing price growth into double digits since the same time last years. The lowest price growth for low-rise housing types (detached, semi, townhome) in the GTA is 6.7% and the highest price growth is 15.5%. Condos are trailing at just above inflation, so they remain a solid stepping-stone into the market.
On Toronto’s Multiple Listing Service (MLS) we have seen an increase of 15.8% more sales since last year, a new record for first quarter sales. We could have easily surpassed this record if there was more inventory.
Inventory drastically hindered our market’s ability to set further records for sales. Currently, available listings are down drastically since last year, leaving buyers anxious for new stock, and willing to pay a premium to secure a property.
We strongly believe that high consumer confidence, and a changing family demographic is persuading families to hold into their family homes for longer than previous decades, driving up demand, and prices. The family demographic is changing, students often return home after studying because of high rents, increasing tuition, low entry-level salaries, and pricy entry-level homes. Parents feel comfortable holding their family home because of confidence in the market, high moving costs, and relatively paid off mortgage.
