Th booming market of Greater Toronto Area’s real estate market is on pace for another year of record-breaking sales and double-digit price growth. Let’s look at few numbers:
- Sales in the first quarter of 2016 rose 15.8 per cent from the opening three months of last year, according to the Toronto Real Estate Board.
- The 10,326 homes sold in March was a 16.2-per-cent increase from the year earlier and accounted for nearly half the 22,575 homes that changed hands in the first quarter.
- The number of homes listed for sale in the first quarter fell to its lowest level for a first quarter in at least 12 years, according to an analysis by National Bank.
All the numbers suggest a great turn to another great year, but what happens if this continues for another 5 or 10 years? HuffPost Canada has put together projections of house prices, based on the trends seen over the past three years. Here is a sneak peak to the end results; if this keeps up, things are going to be really, really expensive.
Here is what HuffPost Canada gathered. All the results were obtained using two processes; linear growth and percentage forecasting. Each of those took into account the rapid growth by using data collected from the last 3-5 years.
- A single-family home in Toronto will run between $2.26 million and $3.582 million by 2026.
- Thinking about upgrading from a condo to a house? Think again. In Toronto today, upgrading from an average condo to an average house costs $758,000. By 2026, it will cost between $1.68 million and $2.95 million, based on our projections.
One reason for the rapid growth identified is the competition among buyers for fewer homes often resulting in bidding wars that drive prices higher. A classic example of demand and supply within our economy.