With 4,355 homes sold in January (6.1% increase over January 2014), and the average selling price for January 2015 up by 4.9 % year-over-year to $552,575, 2015 is shaping up to be another record year for real estate sales in Toronto.
When you think about it, it’s really not a surprise given the economic factors.
- Immigration to the GTA continues from abroad and from other provinces.We gain approximately 100,000 new inhabitants into the GTA each year.
- The lower Canadian dollar makes Canadian real estate even a better bargain for investors from abroad.
- The lower dollar will stimulate tourism (leading to jobs and $$ into the economy) as more Americans will holiday in Canada (20% cheaper than the USA) and Canadians will travel within Canada rather than cross the border.
- A lower dollar favors our exports as well as consulting and technology industries, resulting in a stronger economy.
- The lowering of interest rates will largely mitigate price growth this year, which means affordability will remain in check.
- Robust end-user demand for (well located) condominiums continues, which should result in above-inflation price growth in the high-rise segment as well.
- The demand for centrally located homes in good neighbourhoods and adjacent areas is very strong.People want to live in the city and avoid long commutes.
So as you can see, I believe we are in for another good year for Toronto real estate. As the old saying goes, “Have you bought your land yet? We are not making any more!”
The low interest rates make it a great time to upgrade your home or to buy an investment property. So if you are considering it, or know of a friend who is, I would be happy to help.