I’m back with more Toronto real estate numbers for you…..are you sick of them yet? Since my last market update, there hasn’t been much change. It’s still on fire with no signs of slowing down as we proceed into the spring market.
So let’s cut straight to the point and review the Toronto real estate market number’s from TREB’s report:
- 4,557 transactions reported through the MLS during the first 14 days of April, up by almost 7% from April 2011
- In the City of Toronto, new listings for low-rise home types during the first half of April where down when compared to last year
- Average selling price in the 416 area is…….$553,104, up 2% from the same period last year
- Average selling price in the GTA is…….$506,954, up 5% from April 2011
Let’s just say that conditions are still favourable for sellers, as I’m sure you are all seeing over the media. The even better news, is that the Toronto real estate market will continue it’s upward climb over the next 3 years, as reported by Central 1 Credit Union, with gains predicted at 4% both this year and next. Hopefully, if this prediction comes true, believe me, I’m keeping my fingers and toes crossed being a home owner myself, the average cost of a Toronto home in 2014 would be $523,000!!!! Now you’re probably thinking, what about interest rates? There must be a hidden catch, well, the report also made these statements based on a 5 year rate of 5.7% by 2013. As Helmut Pastrick Central 1 chief economist said, “While interest rates are expected to climb further in 2014, they are likely to remain at historic lows”.
What about the condo market you say? There has been a lot of bad press recently about an oversupplied condo market, a bubble waiting to burst. During the first 14 days, condos also saw gains that surpassed last years. The average selling price in the 416 area is $364,516, up 4% since last year. With high demand of renters wanting to live closer and closer to where they work, the condo market will be well stocked for the future demand to come. Let’s face it, our population is growing, there are plenty of new immigrants coming into Canada, still and Canada remains an attract country for foreign investors. This is a recipe for success in our condo market. As Helmut Pastrick said, “It looks like that market will perform reasonably well. There may be some oversupplying coming but I think the market will generally handle that…..” Pastrick further said, “In fact, with the GTA’s population expected to increase by about 45% over the next 25 years, the need to go up, rather then out, is likely to keep the demand for condos steady.”
It basically looks like the market is not slowing down anytime soon, so you might as well make the best of it as a buyer, by taking advantage of the historically low interest rates or as a seller and receiving top dollars for your investment. Which side are you on?
Well, I think I’ve said an earful as usual, so I’m done, for now. What are your thoughts? Would love to hear from!
***Image via Flickr***