I hope you have been keeping well and enjoying the beginning of the year so far. I always like to start my year with a bang and ten big goals. I hope you have set your 10 goals for this year.
How is the Market in Toronto?
I am often asked, where are the prices going and how much longer before the sky falls with all the condo developments in the city? In my personal opinion the housing market will continue to remain stable. We will see modest growth over the next few years so if you are a speculator with expectations of double digit gains you will need to scale back your expectations. Real Estate is a long term goal and the longer you hold the bigger the reward.
Looking back at 2013
2013 finished stronger and better then 2012. We saw an increase in sales of 13.9% and an increase in price of 11.3%. Detached homes in the 416 experienced the highest growth in price and sales.
“This time last year many were predicting that the condo apartment market would experience a downturn, both in terms of sales and selling prices. While there was a temporary lull in sales and price growth in the first half of 2013, we saw an about face in the second half of the year, as buyers realized home ownership remained affordable. As the demand for condos rebounded, competition between buyers increased and the pace of price growth accelerated," said Toronto Real Estate Board President Dianne Usher.
Looking forward to 2014
It is too early to predict what will happen in 2014. However, based on the results of 2013 with the shortage of inventory and the shortage of good inventory there will be a buying frenzy between now and June.
Recently we saw RBC and Scotiabank quietly reduce their mortgage rates. Every year around this time we see banks lowering their rates and competing against one another, hence the spring market frenzy.
The weather is going to be an often discussed factor here in Toronto. As we continue to experience extreme cold weather fewer people will be leaving their homes while the serious buyers are noticing the quality listings and bidding on them rather quickly.
The loonie weakening against internationally currencies will fuel back the international buyers including the US cash buyers investing once again in Toronto properties.
The rental market remains strong in the GTA. With 1 in 3 Ontarion's still renting offers an opportunity for investors to hold their properties long term.
I hope this breif Market update has given you some fruit for thought. If you are thinking of buying or selling feel free to contact me so that I can give you a better insight for your purpose.