GTA Residential Average Price* |
|||
1996-2015 |
|
||
1996 |
$198,150 |
2006 |
$351,941 |
1997 |
$211,307 |
2007 |
$376,236 |
1998 |
$216,815 |
2008 |
$379,347 |
1999 |
$228,372 |
2009 |
$395,460 |
2000 |
$243,255 |
2010 |
$431,276 |
2001 |
$251,508 |
2011 |
$465,014 |
2002 |
$275,231 |
2012 |
$497,130 |
2003 |
$293,067 |
2013 |
$522,958 |
2004 |
$315,231 |
2014 |
$566,624 |
2005 |
$335,907 |
2015 |
$622,217 |
* MLS |
|
||
Source: Toronto Real Estate Board, RE/MAX Hallmark Ltd. |
The low interest rate environment has also influenced home buying activity in the GTA. While the average residential mortgage-lending rate for a five-year term hovered at approximately eight per cent in 1996, the same product can be had for under three per cent in today’s competitive market.
Homeownership rates have also steadily increased in the GTA, in spite of rising values. Between 1996 and 2006, the level of ownership jumped approximately 10% in the GTA (58.4% to 67.6%). The most recent available rates for the province of Ontario sat at 71.4% in 2011.
Given the turbulence the GTA market has withstood – recessions, 9/11, and SARS, just to name a few – the performance is “nothing short of remarkable”, explains McLachlan.
“Moving forward, there is no reason to expect the upward trend to end,” says McLachlan. “In light of recent volatility in the stock market and overall economic uncertainty, we anticipate an upswing in home buying activity as investors look to tangible assets like bricks and mortar to ride out the storm. The strength of the US dollar will also contribute, serving as an impetus for greater investment in the Greater Toronto Area throughout 2016.”
___