Royal LePage: Demand for GTA housing on the rise
July 13, 2016
On July 13, data was released from the Royal LePage House Price Survey, which gathers information on two-storey homes, bungalows and condos in 53 real estate markets across Canada.
The brokerage anticipates the average price of a home in Canada will be 12.4 per cent higher than average prices at the end of 2015.
“Our forecasting models, which pointed to a slowing housing market as the year progressed, included a modest increase in the cost of borrowing,” said Phil Soper, president and chief executive officer of Royal LePage.
Economic and social “disruptions” have introduced new risks, causing the Bank of Canada to leave interest rates as is for now, Soper said in a press release on July 13.
Canada’s real estate market showed high appreciation in the second quarter of 2016, with the highest year-over-year increase in the last five years.
The average price of a home in Canada increased by 9.2 per cent year-over-year to $520, 223 by the second quarter of 2016.
So what does that mean for the GTA housing market?
The Greater Toronto Area (GTA) saw average home prices increase by 10.2 per cent year-over-year to reach $656,365. Growth in the second quarter in suburbs like Richmond Hill contributed to the price climb.
Ten out of 12 suburbs surrounding Toronto experienced double-digit growth in the second quarter, Royal LePage announced in a press release on July 13.
Buyers continue to head to the suburbs, hoping to find affordable housing. This is causing demand to increase where inventory may be limited, creating bidding wars, said Gino Romanese, senior vice president at Royal LePage.
According to Royal LePage, the outcome expected for the second half of 2016 is a continued price increase, with the average home to reach $718,000 after a 14.9 per cent increase.
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About Olivia Bowden
Olivia Bowden is a freelance writer and is currently an Editorial Intern at YP Next Home. She attends Carleton University and is completing a Master of Journalism degree. Olivia enjoys learning and writing about the Canadian real estate market.