"The forecast has been raised substantially," Dunning says. "For the past three months, resale activity has been much stronger than I had been anticipating."
A $378,700 price is spitting distance of the $379,347 average price recorded at the end of 2008. Dunning says this year's average price could surpass last year's.
Under that scenario, prices would have increased every year since 1996 – a total of 13 straight years.
Not bad, considering that consumers have been repeatedly told this is the biggest economic downturn in North America since the Great Depression.
The Toronto real estate market is being driven by First Time Buyers and by a lack of affordable inventory (homes for sale) geared to first time buyers.
IMHO If there is a doubling of the current interest rates from the below or near 4% range for five year fixed money; there will be two major effects, Shoppers will be eliminated from the Buyer pool and there will be a softening in prices as demand lessens.
What do you think will happen next year?