Re/Max just released a report on December 10 on their forecast of home sale prices across the nation for the new year. For the past year, most Canadian cities experienced an increase in inventory, but still saw modest gains in the average residential sale price (a low supply and high demand is a key factor in determining home sale prices). The greater areas of Toronto and Vancouver in particular experienced strong sale price growth over the past year, with an 8.3 and 7.3 per cent year-over-year increase, as a result of record low numbers of inventory homes and growing demand. The upward trend in average sale prices is expected to continue by 4 per cent in Toronto and 3 per cent in Vancouver by the end of 2015.
This trend reflects the “resilience of our economy,” according to Gurinder Sandhu with Re/Max Integra and Regional Director of Ontario-Atlantic. “Housing demand is being supported by steady employment and immigration, while our GDP is expected to grow another 2.5 per cent in 2015. This is mitigating the effects of higher inventory, which many markets have been experiencing due to increased development.”
In sum, the Canadian housing market in general, and in particular that of Toronto and Vancouver, is on a strong positive trajectory. If you are looking to buy a home in Toronto, speak to an experienced and knowledgeable Century 21 King’s Quay realtor today.