Toronto Sales Hit Record High

New figures have shown that Toronto saw record levels of real estate sales during February. In the latest data, the Toronto Real Estate Board (TREB) said that there were 7,621 transactions – a rise of 21.1 per cent from the previous 6,294.

In the city, single-detached homes have become a luxury item, commanding a price often held for only the most expensive of properties. One real estate broker, John Pasalis, explained that sales in the city have hit records, with the market becoming increasingly competitive. In fact, Pasalis went so far as to say the past winter has seen between ten and 20 buyers lining up for the limited supply of homes.

Meanwhile, a real estate agent having worked in Toronto’s market for 12 years, David Fleming, said that the start of 2016 has been unprecedented. January is the ‘toughest market I’ve ever worked in for single-family homes,’ he said. ‘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.’

The average price for detached homes in Toronto has soared, with February’s value settling at $1,211,459. The TREB revealed that this is 16.3 per cent higher than the same month in 2015. The price gains follow the city’s overall market, where values continue to soar and the number of transactions breaks previous records. Despite the fact that new listings have actually risen by 8.2 per cent, an insatiable demand continues to outstrip supply.

One stream of investment is coming from foreign buyers. In York Region, the average home price is now $859,589. Realtor Ferro Payman said that around one quarter of all transactions are going to overseas investors, who are taking advantage of the low Canadian dollar and benefiting from lower prices. Payman primarily works in Woodbridge, Vaughan and Richmond Hill. He explained that his Iranian, Saudi and Chinese clients generally are willing to spend around $1 million US dollars. However, due to the currency, they end up with $1.2 million or $1.3 million at their disposal. Many of the foreign investors are non-residents who are buying homes for their children who are in Canada on visas. Others are recent immigrants to the nation. ‘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 said.

Despite measures being brought into effect to cool the market, expert Robert Hogue says that February’s statistics show they’ve had no effect at all. In fact, whilst Vancouver and Toronto continue to be outliers compared to the rest of Canada’s real estate market, Hogue concedes that they’re unlikely to burn out any time soon. Although Toronto’s market may be unaffordable for many, for overseas investors capable of getting enough capital together and benefiting from the exchange rate, buying homes continues to be an attractive option.