January 15, 2010 -- The start of 2010 brings with it the opportunity to set ambitious new goals for the year and even the decade ahead, particularly in light of the market’s fortuitous recovery in recent months.
Interest rates remain at historically low levels, offering continued affordability in the market. Although Ontario’s unemployment rate remains very high at 9.3 per cent, even this sector is beginning to show signs of improvement, with November experiencing the largest employment increase in our province since September 2008. As well, with nearly 100,000 newcomers arriving in our great city every year, immigration is another factor that makes an important contribution to the market.
Provided that these three key conditions are favourable, we should continue to experience a robust market throughout 2010. Homeowners will also react to the strong sales and price increases seen in recent months, resulting in a much-needed increase in inventory. Many may also undertake transactions in the first and second quarters of this year to avoid increased costs associated with the harmonized sales tax, which takes effect July 1st. First-time homebuyers may have even more incentive to get into the market as Federal Finance Minister Jim Flaherty recently alluded to potentially tightening lending standards in the future.
Source: Toronto Real Estate Board