By Michael McCann
A new year is upon us and with it comes the annual question: What’s in store for Toronto’s 2016 housing market?
We all hear the same financial naysayers who yearly forecast a housing collapse and this year their tune is no different. But I don’t see our house prices going south and losing any significant value in 2016.
Of course you’re saying, “What do you expect him to say, he’s a realtor!” But those of you who have been reading my articles know I’m no crystal ball gazing psychic. I’m strictly a numbers and facts guy and my take, originating from what I have read as well as my experience, is that we will continue to see a strong seller’s market.
Factors driving real estate
Here are some of the key factors that will continue to influence continued growth in our Toronto housing market:
- Mortgage rates continue to be at historic lows. What comes out of these low interest rates is a greater number of homebuyers, which then drives up demand and therefore prices
- Demographics – with millennials being the new market driving force. Having finished their education and now working on careers, they are looking enter the housing market. Many see purchasing a home as cheaper than paying rent
- Supply and demand. There are only a finite number of homes in Toronto and geography plays a significant role in what buyers have to look at.
- Homeownership and affordability is critical in making an informed home purchase. This is where a detached home might be unaffordable for a new buyer, so now a condominium or a townhouse becomes the viable alternative
- The Toronto economy continues to grow. The Conference Board of Canada is forecasting our economic growth to be 2.8% for the coming year and predicting strong employment gains
Most parts of Canada and Ontario they will continue to experience a sluggish or negative housing market, however Toronto will be one of the handful of fortunate major markets to see continued growth. I don’t expect to see year-over-year double digit increases, but we will still see a very robust housing market here in Toronto.
What can we expect in Birchcliff in 2016?
With continued demand for housing in our neighbourhood we will see a greater number of home buyers entering the market, which will drive up demand and therefore increase home resale prices.
Birch Cliff – Cliffside Home Sales in Dec. 2015 – 13 homes sold
Source: Toronto Real Estate Board. Excludes commercial properties, condos and vacant land.
Birchcliff/Cliffside
- December 2014 only 8 homes sold while in December 2015 13 sold – an increase of 62%
- December 2014 our neighbourhood average sold price was $661,550 while December of this year the average sold price came in at $665,415 – statistically no change
- December 2014 and December of 2015 it took exactly 13 days to sell a home
Toronto Real Estate Board
- 4,418 sales in December 2014 with December 2015 showing 4,945 sales – Up by 11.9%
- $556,259 average selling price December 2014 with December 2015 coming in at $609,10 – Up by 9.5%
- December 2014 it took an average of 32 days to sell a home where December 2015 it was 29 days
For a look at real estate statistics over the last few months, click on the tabs.
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Birch Cliff – Cliffside Home Sales in Nov. 2015 – 15 homes sold
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Birch Cliff – Cliffside Home Sales in Oct. 2015 – 23 homes sold
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Birch Cliff – Cliffside Home Sales in Sept. 2015 – 19 homes sold
[/tab] [tab]Birchcliff – Cliffside Home Sales in August 2015 – 21 homes sold [/tab] [tab]Birchcliff – Cliffside Home Sales in July 2015 – 28 homes sold [/tab] [tab]
Birchcliff – Cliffside Home Sales in June 2015 – 39 homes sold
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According to the Toronto Real Estate Board, our local housing market is defined as Birch Cliff/Cliffside and the boundaries can be seen below.
View Birch Cliff / Cliffside in a larger map