In the last few days the news has been buzzing with talk of the Toronto housing market’s record year for sales, in both volume and price! The average home price in the GTA was $622,217, up 9.2% from 2014, while in Toronto specifically, the average price for a detached home was $1,039,658. Yes. You read that right! The AVERAGE detached home cost over $1 million, which is an 11.8 increase in the past year (source: CBC News). Madness!
What does that mean for the Barrie housing market?
Fortunately, it’s a great thing! It means growth! With the average Toronto home price out of reach for most families, nearby communities like Barrie and the surrounding area are gaining attention. In 2015, average home prices in Barrie hit a record high as well, although at a much more affordable $345,288 according to The Canadian Real Estate Association. The savings for many GTA residents is obvious, even factoring in the added cost of commuting to work.
With the new mortgage rules beginning in February, more affordable areas surrounding the GTA are getting even more enticing. These rules are set to affect purchases over $500,000. CMHC will still only require 5% down for any amount up to $500,000, however, any portion over that will require 10% (Source: CBC News). For the average detached home in Toronto priced at $1 million, a buyer would be require to put $75,000 down ($25,000 for the first $500,000 of the purchase price + $50,000 for the remaining $500,000). That means that the average buyer needs to come up with an additional $25,000!
With all these changes, we have already seen the Barrie housing market strengthen and only anticipate more as the spring real estate market gets into full swing! This is great news for sellers as demand is high and home prices continue to climb.