The Vatandoust Sirrs Team Blog
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February Was a Hot Month in Real Estate
Durham Region Association of REALTORS(R) (DRAR) reported 845 residential transactions in February 2016, which was 16% higher than sales in February of last year. New listings coming on the market didn't keep pace and actually declined by 2.9%. Greater Toronto Area (GTA) REALTORS(R) reported a record number of home sales through the Toronto Real Estate Board (TREB) - up by 21.1% over February 2015 and beating the previous record set in 2010. New listings with TREB were up from last February but at 8.2% they still fell behind the sales growth. This shows a tightening of market conditions compared to last year.
For Durham, the average selling price in February 2016 was $490,081, a 16.5% increase from February 2015. On average, homes were selling in 16 days for 102% of the asking price. "A decrease in inventory coupled with high demand produces healthy price growth, known as a seller's market," explained DRAR President Sandra O'Donohue. "This price growth is intensified by competition between buyers." For the GTA, the MLS(R) Home Price Index (HPI) Composite Benchmark was up by 11.3% year-over-year. The average selling price was up by 14.9% annually to $685,278.
"Assuming similar interest rates and economic environments, we are expecting this trend to continue into the spring market," commented O'Donohue. "We have witnessed first-hand that demand for homeownership in the Durham Region remains very strong." Speaking of the GTA, TREB President Mark McLean said, "Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines coming into effect that require at least a 10 per cent down payment on the portion of purchase prices between $500,000 and $1,000,000."