2014 is over and today, 5 January is the first full day when everyone is back to work. Being a REALTOR in the Greater Toronto Area, one the biggest market in North America and definitely in Canada, one of the common question I get is, "How is the real estate market?". While there have been all kinds of forecasts and news, I have listed here some of the important ones. All in all, strong demographic and economic fundamentals will continue to support the housing market and real estate in general in 2015.
- The Canadian Real Estate Association (CREA) revised its forecast for annual housing sales in December, projecting national activity to reach 485,200 units, a year-over-year increase.
- In December, Scotiabank predicted that interest rates will stay lower for at least another year, with the first increase not due until the beginning of 2016.
- The Bank of Canada, in a report published in December, forecasted a moderation of housing prices in the coming year.
- Economists predicted that the Bank of Canada will not raise interest rates until the last quarter of 2015.
- A poll, published by Reuters in November, forecasted that 2015 would see a slowdown in housing construction and prices.
- In November, the Organization for Economic Co-operation and Development (OECD) forecast that Canadian interest rates will rise in May 2015.
- Data from the British Columbia Real Estate Association (BCREA), published in November, predicted that housing starts will be slightly below 30,000 units in the province of British Columbia in 2015, while residential sales are forecast to increase 1.2% to 84,900 units.
- Economists, speaking at the Calgary Economic Development’s 2015 Economic Outlook in November, predicted that there will be a softening of the economy in Calgary and throughout Alberta next year, but were careful not to predict a crisis.
- A report published by Canada Mortgage and Housing Corporation (CMHC) in November said the overall trend for housing starts will continue steady with a dip in 2015, before rising again the following year.
- The annual Emerging Real Estate Trends report, published in October by Urban Land Institute and PricewaterhouseCoopers, said the hot housing market will continue into 2015. The report also said 2015 will see a greater focus on creative solutions for city living.
- CMHC’s third quarter Housing Market Outlook, published in August, said that economicand demographic fundamentals will continue to support housing activity into 2015.
So there you have it. It has been a mixed review for 2015 however the demographics and population growth in cities like Toronto will continue to push the real estate forward and the prices will continue to rise. Also, don't forget, 2015 is when Toronto is hosting the Pan Am Games and the Parapan Am Games. The games will cause an upward pressure on hotels, short term rentals and consequently create a demand for rentals, which is positive for the investors amongst us.
Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™. This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.