We saw a “softening” of the number of sales starting mid-year 2010, but not the “bubble bursting” that was predicted by many so called experts. 2009 was one of the hottest Toronto Markets ever. In 2010 we ended up finishing with 86,094 sales just slightly below the 87,177 in 2009. We are right now sitting at a very low inventory level with just over 10,000 homes for sale.
SO the question remains … what will happen in 2011? My personal opinion is that we will see a decreased number of sales this year over 2010. In general, inventory numbers will remain relatively low and prices in the GTA will rise at a slower pace than we’ve experienced over the last few years. To put things in perspective though, the last few years have been crazy so we’ll go back to more “normal” price increases. While many areas of the GTA will remain in a hot “Sellers Market”, it appears that the further the area is from the city centre and the higher the price of the home is compared to the average in the area, the more adversely affected the particular market may be. In general, the condition and pricing of properties will be much more important in 2011. Agents will have to work harder and do more effective marketing.
There are 3 main conditions that will cause our market to remain strong.
- Our inventory levels are very low and should remain low. We won’t have a huge influx of new listings or see anything close to other areas around the world as far as “distressed properties” coming on the market. Buyers won’t be able to sit back to pick and choose.
- Mortgage interest rates are very low and should remain low for quite some time. Although we may see marginal increases over the next while, home ownership will remain very affordable.
- Our economy is very strong and seems to be improving. Canada is a shining star in the world economy. We’ve been far less affected by negative economic conditions experienced elsewhere. Toronto will be right up front leading the pack in Canada.
Unless something drastic happens and we see significant changes in the 3 conditions above, we’ll be in great shape for the year. If you know anyone who wants to take advantage of these interesting market conditions, whether they want to sell OR buy, call me with their information or give them my number. I’ll work hard for them and give them the “red carpet” treatment!