Real Estate News.
The average selling price for TorontoMLS sales was $685,278 – up by 14.9 per cent compared to February 2015.
Toronto Real Estate Board President Mark McLean announced Greater Toronto Area REALTORS reported a record number of home sales through TREB’s MLS® System in February 2016. There were 7,621 transactions reported this past February – up 21.1 per cent compared to February 2015.
The number of new listings entered into TREB’s MLS System was also up on a year-over-year basis, but by a lesser 8.2 per cent. The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year.
Seller’s market conditions continued throughout the GTA in February. Strong competition between buyers resulted in a healthy growth in selling prices. The MLS Home Price Index (HPI) Composite Benchmark was up by 11.3 per cent year-over-year. The average selling price was up by 14.9 per cent annually to $685,278.
The average office lease rate was $14.66 per square foot net – up by 35.6% from February 2015.
Toronto Real Estate Board President Mark McLean announced that Toronto Real Estate Board Commercial Network Members reported 392,132 square feet of combined industrial, commercial/retail and office space in February 2016. This result was down from 796,437 square feet of space leased during the same period in 2015.
Industrial properties accounted for more than three-quarters of the total space leased in February. The commercial/retail segment accounted for the next largest share followed by the office segment.
Average lease rates for properties transacted on a per square foot net basis, where pricing was disclosed, were up for all three major market segments on a year-over-year basis. Much of the increases in average lease rates were due to a change in the mix of properties leased, including differences in the size and location of transactions this year compared to last.
There were 55 combined industrial, commercial/retail and office sales reported in February 2016, where pricing was disclosed. This result was up compared to 44 sales reported for February 2015.
Average rents for one-bedroom and two-bedroom condominium apartments were up year-over-year by 1.9 per cent and 2.2 per cent respectively to $1,657 and $2,241 per month.
Toronto Real Estate Board President Mark McLean announced that there were 9,635 condominium apartment rental transactions reported through TREB’s MLS System in the third quarter of 2015. This result represented a 22.6 per cent increase compared to Q3 2014. The annual increase in rentals was slightly greater than the annual increase in the number of units listed for rent.
One-bedroom and two-bedroom units accounted for almost 95 per cent of condominium apartment rentals. The number of one-bedroom apartments rented was up by 24.7 per cent compared to Q3 2014. The number of two-bedroom apartment rentals was up by 18 per cent.
Average rents for one-bedroom and two-bedroom condominium apartments were up year-over-year by 1.9 per cent and 2.2 per cent respectively to $1,657 and $2,241 per month. These rates of growth outpaced the annual rate of inflation in the third quarter.
One thing is clear so far: Millennials have had a huge impact on the GTA rental sector because of their willingness to pay a hefty price — on average about $1,800 a month — to rent sky-high new glass-and-granite condos an easy walk from work.
The first wave — boomers’ kids who range in age from 15 to 34 and make up about one-quarter of Canada’s population — are just moving into their prime home-buying years. Many live in Toronto and Vancouver, where job growth has become a major magnet. Already, those fortunate enough to find a decent, dependable job, rather than just contract work, have been helping drive competition for starter condos and single-family homes.
“Affordability will play a huge factor in who buys what,” says Dana Senagama, principal GTA market analyst for Canada Mortgage and Housing Corp., which has surprisingly little data so far on how the might of the millennials is being felt so far. “They’re going to be a force to be reckoned with over the next decade, especially as they move into their prime child-rearing years and will need more space.”
One thing is clear so far: Millennials have had a huge impact on the GTA rental sector because of their willingness to pay a hefty price — on average about $1,800 a month — to rent sky-high new glass-and-granite condos an easy walk from work. That’s helped fuel the unprecedented condo boom in the GTA, especially in the downtown core where, despite thousands of new suites on the market, the rental vacancy rate remains below 2 per cent.
Increase in inventory of unsold homes, prices, mortgage rates and supply of rental units all expected to contribute to slowdown in starts, sales, Canada Mortgage and Housing Corp. forecasts.
The Canadian housing market is expected to moderate over the next two years, Canada Mortgage and Housing Corp. said Monday it its fourth-quarter outlook. A rise in the inventory of unsold homes, higher prices and mortgage rates and an increase in the supply of rental units are all expected to contribute to the slowdown.
CMHC chief economist Bob Dugan says the gains in provinces such as Ontario and B.C. have offset the slowdown in oil-producing provinces such as Alberta. “We expect, however, that this counterbalancing effect will decrease over time,” Dugan said. “As such, housing starts and MLS sales are projected to moderate in 2016 and 2017.”
Housing starts are expected to slip in 2016 to a range of between 153,000 and 203,000 units, with a forecast of 178,150 units, slowing to between 149,000 and 199,000 units, with a forecast of 173,650 units, in 2017.
In 2016, sales are forecast to range from 425,000 to 534,000 units with a forecast of 479,500, and from 416,000 to 536,000 units in 2017 with a forecast of 476,000. The average MLS price is forecast to be between $420,000 and $466,000 in 2016. The average price in 2017 is expected to be in a range between $424,000 and $475,000.