Hottest Housing Markets Currently Driven By "FOMO"

Many would-be homebuyers in Canada’s hottest urban markets are rushing in to buy homes without knowing whether their finances can handle it, a new survey suggests.

Nearly one in five respondents in the survey from TD Canada Trust showed signs of “FOMO,” or “fear of missing out” on the large price gains seen particularly in Greater Vancouver and Greater Toronto.

Twenty per cent said they were worried they rushed the buying process in order to secure a home, while 13 per cent said they rushed out of fear they would get priced out of the market.

Those fears could be creating a feedback loop for house prices, with home buyers rushing in ahead of further price hikes, thus putting more demand on the market and creating more upward price pressure.

That could help to explain why home sales in Toronto and Vancouver hit record highs this year, with sales up 27.4 per cent in Vancouver in March, and up 16.2 per cent in Toronto.

Strong Growth in Home Sales in March/Q1

April 5, 2016 -- Toronto Real Estate Board President Mark McLean announced record TREB MLS® home sales for the first quarter of 2016 following a strong result for March transactions. There were 10,326 sales in March and 22,575 sales in the first quarter. The year-over-year growth rate for sales was 15.8 per cent for Q1 2016 and 16.2 per cent for March 2016. For the TREB market area as a whole, double-digit year-over-year rates of sales growth were experienced for all major home types during the first quarter.

Over 6.3 Million Square Feet Leased in Q1 2016

April 5, 2016 -- Toronto Real Estate Board President Mark McLean announced that TREB Commercial Network Members reported year-over-year growth in total commercial leasing activity reported through TREB's MLS® System for the first quarter of 2016. Lease agreements were signed for a combined 6,381,533 square feet of industrial, commercial/retail and office space. This result represented a 6.9 per cent increase compared to the first quarter of 2015.

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Maison Valley consists of Mase Dhirani and Sam Valimohamed, two top-producing RE/MAX Ultimate agents, who specialize in the various aspects of both residential and commercial real estate including selling properties, acquiring for buyers, investments & property management.

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