Toronto, Canada, January 27, 2016 – Canadalend.com , the leading low-cost, private mortgage solution provider in the country, reacts to data showing that first-time homebuyers helped drive Toronto’s record real estate market in 2015. It also explains why the Greater Toronto Area (GTA) could set another record for sales in 2016.
“For home sales in Toronto, 2015 was a record year. Full-year sales totalled 101,299—a 9.25% increase over 2014 and the first time annual figures have passed 100,000,” says Bob Aggarwal, president of Canadalend.com. “The average price of all home types sold in the GTA increased by 9.8% year over year to $622,217. After a record year for home sales and price gains, the average selling price for all home types in 2016 is expected to trend higher to between $655,000 and $665,000.” (Source: “GTA Realtors Report Record Year Fore TREB MLS Home Sales,” Toronto Real Estate Board press release, January 6, 2016; http://www.trebhome.com/market_news/release_market_updates/news2015/nr_market_watch_1215.htm.)
While many believe strong sales growth is pricing out first-time homebuyers, Toronto’s record year for real estate was driven by first-time homebuyers. In 2015, 53% of buyers in the GTA were first-time buyers. First-time homebuyers between the ages of 18 and 34 are expected to continue to drive the Toronto housing market in 2016 as well. (Source: “TREB Launches Inaugural Market Year in Review & Outlook Report,” Toronto Real Estate Board press release, January 18, 2016; http://www.trebhome.com/market_news/release_market_updates/news2015/nr_treb_outlook_report.htm.)
“Improving regional economic conditions in the GTA and low interest rates helped a record number of people get onto the property ladder in 2015. The majority of whom were first-time homebuyers,” Aggarwal adds. “This reinforces the belief that there is not an affordability issue in the GTA; it also shows that first-time property buyers in the GTA view home ownership as a great long-term investment. And with the Bank of Canada holding its key lending rate at 0.5%, it continues to be an excellent time for first-time homebuyers to enter the housing market in the GTA.”
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada , with skilled independent, licensed professionals helping Canadians coast to coast. Canadalend.com provides its clients with residential and commercial mortgages , home equity credit, debt consolidation, and advice for financial concerns.