A major market real estate board has launched its first yearly review and outlook.
The Toronto Real Estate Board released its inaugural market year in review and outlook report Monday.
“After a record year for home sales in 2015, another strong year is forecast for transactions reported through TREB’s MLS System in 2016; between 96,500 and 105,000 home sales are expected to be reported this year,” Jason Mercer, TREB’s director of market analysis, said in a release. “Whether we see the second best year on record or a second consecutive record year will largely depend on the direction of borrowing costs and the availability of listings, particularly in the low-rise market segments.”
The report includes brand new survey results conducted for the board by Ipsos Reid.
“Ipsos Reid’s recent survey of intending buyers found that 12 per cent of GTA households are very likely to purchase a home over the next year. First-time buyers accounted for approximately half of intending buyers,” Sean Simpson, VP with Ipsos Reid said. “These results bolster the argument that people in Toronto and the surrounding regions continue to view home ownership as a solid long-term investment. This includes young people aged 18 to 34, who made up the majority of intending first-time buyers.”
The survey found that home prices will continue to increase in 2016, with the average price expected to fall between $655,000 and $665,000.
The survey also examined how the new mortgage rule changes – which will impact pricier homes – will affect homebuyers.
“For most home buyers, at least some of their purchase price will be covered with a mortgage. However, the Ipsos Reid survey found that a very small share of intending buyers were planning on down payments of between five and 9.9 per cent,” Mercer said. “This suggests that only a small percentage of intending buyers will be impacted by the mortgage lending guideline changes announced by the Federal Government in December 2015.”
To view the entire report, click here