With demand High and a Shortage of Inventory, it was no doubt that 2016 was a record breaking year for Price Growth. Most areas saw doubt digit increases which was very different then prior years where single digit increase was the norm. The reason for strong price accerlation was due to continued low interest rates, low unemployment, population increase and above inflation income growth.
Interesting enough, foreign buyers only acccounted for 4,9% of the transactions where majority of the Buyers were buying a primary residence to either rent out or have their family members live in. As a result of the recent foreign buyers tax implemented for the Vancouver area, only 1 in 10 Realtor members in the GTA had received inquiries from foreign byers who otherwise would have purchased a home in Vancouver. Just 16% of these inquiries led to an actual purchase. In other words, *IPSOS estimated that less than 2% of Realtor members in the GTA represented a foreign buyer that has been impacted by the new tax in BC
IPSOS reports that 29% was the average downpayment for a a single dwelling.
Market has no signs of slowing down for 2017 and demand will continue to outpace the supply of houses that should put us back in the books for another record breaking year of price growth.
*Ipsos, Market research company
Market Watch May 2016
The robust market of year over year of price growth is showing the increased demand of people looking into home ownership
Just look at the year over year spread on how prices changed since last year in the York Region category
Average days on the market is less than 1 week with many home owners holding off on accepting offers until a specific day.
Vaughan is proven to be a continuously strong market with the affordability factor of low interest rates.
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