My Monthly Market Moment December 2016 is a “stunner”!
All records have been broken this year; however, we are forecasting that in 2017 there will be a “softening” in upward mobility on prices and sales. We are at least hoping for this, as affordability is at risk of becoming an endangered economic species and may not be a renewable resource!
Here’s the Executive Summary:
*Sales are up for December 2016 by 8.6% compared to same period last year. This is largely driven by condo sales.
*Average sale prices, however, SOARED by 20% and that INCLUDES the typically lower priced condos!
*On an ANNUALIZED basis sales were up by 12% over 2015 with 113,133 sales
*On an ANNUALIZED basis average sale prices rose by 17.3% to $730K
*A KEY STAT: TOTAL LISTINGS at the end of December 2016 were at the LOWEST IN 15 YEARS.
You can drill down for more details here: http://bit.ly/2iIg2NS
We need supply solutions, not government controls. A recent IPSOS survey of over 3500 agents showed that only 5% of purchasing transactions came from FOREIGN BUYERS…so, taxing foreign buyers is NOT a good idea or even necessary. Even the Chinese are finding us (BC and Ontario) not nearly as “affordable” as some key areas in the states. So investment in the US by the Chinese can expect to rise appreciably. No, foreign buyers are not the devils here….LACK OF SUPPLY is the key problem to be solved and I look forward to the province coming up with some innovative/practical solutions. And by the way, the city’s potential plan to increase the City Land Transfer Tax is another egregious idea and is simply fiscal speak for TAX GRAB…another BAD IDEA! Did you know that for the past TWO YEARS….sales in the GTA have taken place at a 2:1 ratio with 2/3 of the sales taking place in the 905 Area Code and only 1/3 of sales taking place in the city and that INCLUDES condos where we do (did?) have some supply. At this absorption rate, that supply will also become dried up. We are already experiencing upward pressure on condo prices because of the heavy competition at the bidding table.
And don’t think that the suburbs are not experiencing the same ‘heat wave’. York, Durham, Dufferin counties are all in the 20% to 25% increase range in sales/prices.
Happy New Year everyone…and let’s hope that 2017 will deliver on its promise to keep us housed and happy!