Well, with 15% fewer listings this May compared to last May, and mortgage rates still at record lows the Toronto Real Estate market continues to perform well, favoring sellers over buyers. Sales were up 6% over last May. “Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May,” said Toronto Real Estate Board President Bill Johnston. “At the same time, the market has become much tighter compared to last year, due to a substantial dip in new listings.”
Homes were on the market for an average of 23 days and sold for an average price of $485,520– up nine per cent compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto. “We have seen clear-cut seller’s market conditions emerge over the past two to three months,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “The robust price appreciation that we have seen will hopefully prompt more households to list, resulting in a more balanced market later this year," continued Mercer.
Latest talk is that the goverment may reinstate the home improvement rebates which will spark more home owners to improve their homes with an eye or selling to take advantage of the hot market. Toronto is considered a great place to live with low crime rates, great job prospects and a continuous influx of foreign investment it's expected that prices will continue to perform well.
Real estate is a solid long term investment that proves itself over and over again. With more people coming and the same amount of land being available prices will continue to climb.