Will we have the sky rocketing interest rates? Will the Toronto Condo Bubble Burst? How is our unemployment rate?
The global scandals and economic meltdown of entire nations was not shared by Canadians.
The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out. Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters. While clearly not impervious to the impact, Canadian consumers are intent on making their moves now, in advance of higher housing values and rising interest rates down the road. Canadians continue to buy houses.
Improvement in both provincial and local economies, is required; The increased deficit in Ontario resulted in a downgrade in Ontario's economic outlook, Rob Ford's first year in office has been acrimonious, especially during the second half of 2011, yet Toronto real estate values continue to defy logic with a projected increase of five per cent in 12.
The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further. 7.9% in Toronto. Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year. The rising belief in homeownership is key, especially among Generation X and Y—some of whom are making their moves sooner. Boomers and retirees are changing, too. They’re healthier and more active, with longer life expectancy. Overall, we’re seeing an extension of the homeownership cycle, and it’s great news for housing.
What happened to Freedom 55? A Statscan study doesn’t speculate as to why we are seeing such a significant trend towards delaying retirement, but polls and opinion surveys provide some answers. For example, a Harris/Decima poll conducted for Scotiabank and released in earlier this year found that more than two-thirds of respondents said they plan to keep working after reaching retirement age. Of these, 38 per cent will do so because they won’t have enough money to live on. Another survey, this one for TD Waterhouse, discovered that 67 per cent of baby boomers are worried they won’t have enough money to retire, while only 15 per cent feel comfortable about their situation.
While tighter supply levels contribute to steady price appreciation in most major markets across Canada this year, Toronto is approaching 90 thousand units. Condo sales will now account for almost 40% of all units sold.
With houses popping on the market resulting in immediate multiple offers, We are hopeful for an increase in inventory more in line with years previous that should ease upward pressure on average price in the year ahead, but those in the mature market with homes in desirable neighourhoods are holding onto their homes longer...
If you are considering a move this year Call me... and allow me to demonstrate what I do for you. 647 218 2414