The Canada Mortgage and Housing Corporation (CMHC) is reporting that buyers from the Greater Toronto Area (GTA) have contributed to record home sales in the London-region.
Officials say 2016 and 2017 were back-to-back record-breaking years for sales.
“Why did we have a record year of sales in 2017 right after another record year of sales in 2016?” senior market analyst and report author Amran Wali asked on Thursday’s edition of London Live with Mike Stubbs.
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“The answer to that is we had very strong demand from GTA buyers in the London market.”
Wali stated that from the first quarter of 2015 to the third quarter of 2016, buyers from the GTA made up about 1.9 per cent to three per cent of sales in the London region. However, once prices peaked in the GTA in the first half of 2017, roughly nine per cent of sales in the London region were going to GTA buyers.
“If you break that down by what proportion of homes GTA buyers bought by price bracket and you look at the more expensive homes, the homes priced over $450,000 in 2017 Q1, GTA buyers purchased 30 per cent in South London, 21 per cent of homes priced over $450,000 in North London,” he added.
“Those numbers, they really stand out.”
The London region has actually seen a drop in sales in 2018, largely because there are fewer houses on the market.
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