Toronto Real Estate Report: January 2015

What to Expect!

With 4,446 homes sold on the Toronto Real Estate Board in December, 2014 went down in the history books as the second most active year in the history of the Board with 92,867 sales, just below 2007’s record of 93,193 homes sold.

The average selling price continued to grow on a year-over-year basis in 2014, with an 8.4 per cent increase over 2013 to $566,726. The continued strong price growth is a result of two factors; strong demand and low interest rates which made the purchase of an average priced home affordable, in terms of the average household’s ability to comfortably cover their monthly mortgage payments. These factors created a shortage of homes for sale that resulted in increased prices as buyers competed for a limited supply of available homes. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses.

The forecast for 2015 appears to be more of the same, as there seem to be no factors on the horizon that will dampen the demands for home ownership. Toronto real estate is still a great investment and many foreigners continue to invest as they see the growth and potential of the GTA. The Downtown core continues to feel pricing pressure generated by lack of inventory and The desire of more and more people to move closer to the action and excitement of the city.

Having said that, not all properties, areas or condominium projects appreciate the same way.There is a huge variance in appreciation in different areas and real estate categories such as condos,multi-unit income properties and commercial buildings.My job is to help you make the best decision possible for your needs.

Best wishes for a happy and healthy 2015.

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