Vancouver and Toronto's real estate sector have bade 2016 on a high note.
CBC News Canada reports both major cities have recorded higher sales in a year that has made the already sky-high prices even higher. The real estate boards of respective cities have released the number showing tnat last year was a rather busy for one for agents. Last year in Toronto alone, sales rose 9.2 per cent over the previous year to hit a record 101,299.
Toronto Real Estate Board president Mark McLean said in a statement, "If the market had benefited from more listings, the 2015 sales total would have been greater. As it stands, we begin 2016 with a substantial amount of pent-up demand."
CBC News adds that high demand pushed the average resale-selling price for the entire year in the Greater Toronto Area to $622,217 - up 9.8 per cent from the year before. Meanwhile, in the city, the average selling price for all real estate types was $659,270 and for detached houses, the average selling price in the city hit $1,039,658 last month, up 11.8 per cent in a year.
If you think that's hot, think again. It is even hotter in Vancouver. The benchmark for all types of homes in December in Metro Vancouver was $760,900. It is a staggering increase of 18.9 percent compared to a year before.
The benchmark price for detached houses soared 24.3 per cent from December 2014 to $1,248,000. The home sales hit a record high of almost 28 percent despite a lower number of homes listed for sale. Because of this, property assessment in the area is being raised to 30 percent.
Darcy McLeod, president of the Real Estate Board of Greater Vancouver said, "We often hear economists say that sellers' market conditions put upward pressure on home prices. That was certainly the case in 2015, with price increases ranging from 14 to 24 per cent, depending on property type."
Other cities are not feeling the heat as much as they maintained modest price increase and other even decreased. In Calgary, for example, home prices are falling as the supply increases. The benchmark price fell to 2.3 percent compared to 2.6 percent average.
Meanwhile, the Federal government now requires a larger down payment to purchase properties with a value higher than $500,000.
