As one of Canada’s most active markets, the Toronto real estate sector is showing no signs of stopping, with February 2016 numbers posting an unprecedented increase of 21.1 per cent compared with the same month last year.
TREB figures also pointed at a 16.3 per cent rise in detached home prices in the city, translating to an average of $1,211,459 last month. The overall average for Toronto homes sat at $685,278, while the number of new listings went up by 8.2 per cent.
Brokers and sellers are confident of this momentum lasting throughout most of the year.
“Every single house that comes out, even those that aren’t really worth it, end up with multiple offers. So it’s a very difficult time to be a buyer and the good times continue to roll for the sellers,” Toronto real estate broker David Fleming told the Toronto Star
Fleming said that the first part of 2016 represented the “toughest market I’ve ever worked in for single-family homes” in his 12-year stint as a GTA broker.
Realosophy broker John Pasalis concurred with the observation, saying that the “insanely competitive” market is spurring ever-intensifying price wars.
“Sales are off the charts,” Pasalis said. “The positive thing is it’s actually home buyers rather than speculators or flippers.”
Industry players noted that the significant volume of foreign capital continues to prop up the market.
“In their mind, they’re willing to spend $1 million, but when they convert the money and have it sitting in the bank, at this point they have $1.2 or $1.3 million,” according to Remax Infinite realtor Ferro Payman. He confirmed that as much as 25 per cent of his deals are with Arab, Chinese, and Iranian investors who are taking advantage of the generous exchange rates.
“They see the growth of Canada, especially in Toronto. And when I show them the sales that have been happening over the past couple of years, they become very eager to purchase a house,” Payman added.