Lets recap the Toronto Real Estate Market events for 2010 and forecast for 2011.
Although We saw a “softening” of the number of sales in 2010, but not the “bubble bursting” that was predicted by so many. we finished with 86k sales just slightly below the 87k in 2009. Listings right now are at 10k homes for sale. This is very low for a city of 4 million plus in the Toronto GTA.
So, what will happen in 2011? Inventory numbers (number of houses for sale) will remain relatively low and prices in the GTA will continue to rise at a slower pace than we’ve had over the last few years. Simply put, the last few years have been strong so we’ll go back to “normal” price increases. [that are the rate of inflation plus savings deposit returns, so lets say 3 - 4%] Many neighbourhoods of the GTA will remain firmly in a “Sellers Market”.
Digital Advertising, QR codes and Video marketing will separate Agents with Content and Internet Marketing and their property presentations from "Old School" agents that will need to work harder and do more effective marketing.
Many things are influencing our market.
1. Our inventory levels are very low and should remain low. Except for late night TV foreclosures and power of sales do not really exist as far as “distressed properties” coming on the market. Buyers won’t be able to sit back to pick and choose. We won’t have a huge influx of new listings
2. 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.
Have included a comparision calculator for you to try as Buy vs Renting Calculator
http://www.caamp.org/mortgage-calculators.php?pid=502 I found that when you compare a 2 bed 2 bath rental at $1800 per month vs the cost of ownership at $1250 Owning makes sense.
3. Our economy is very strong, Unemployment is low at less than 8% in Toronto and may be improving. Toronto continues to be a leader and will be right in front leading Canada. Buyers and Sellers are already asking if Rob Ford [our newly elected Mayor] will repeal the Toronto Land Transfer Tax. This may create additional hesitation.
Would you like to live here? Call me or email. Lets get you started!