The winter of 2013/2014 may be one of the fiercest winters Torontonians have faced, but it did not deter the serious buyers as they braved the harsh conditions to purchase 4,135 homes, in January,slightly down from last year’s 4229 sales.
What the snow did affect was the number of homes that were listed for sale, 11,903 vs last year’s 14,231 or 16% less. This lack of inventory created multiple offer situations and resulted in January’s average selling price of $526,528 – up by more than 9% compared to $482,080 in January 2013.
The major change that is occurring is the recovery of the US economy. Analysts are reporting that real estate prices have recovered and are 15% below their height in 2007. (The only exception is Florida, where its 30% below its peak). This recovery has sparked the Canadian/US exchange rate to fall to $1 Canadian to .90 US with some predicting it will drop further to .80 cents. The lower exchange rate will stimulate our economy through tourism and of course exports, always a good thing as a Canadian living at home, but more expensive when we travel!
With the economic boost, there will be more jobs and more buyers entering the market, so real estate investment is still a great opportunity. If you are considering it, or know of a friend who is, let’s get together and talk.
Have a great month and remember, I really appreciate your referrals!
Spring is coming,Stay Positive!