Despite an exceptionally strong start to the year, home sales in the Greater Toronto Area are predicted to fall short to 2009 levels in 2010. An estimated 85,500 homes are expected to change hands by year-end, a two percent decline from the 87,308 units sold in 2009. Average price in the GTA continues to climb, with the city set to post a yearover
increase of close to nine per cent to $430,000 in 2010, up from $395,460 one year ago.
The overall health of the Greater Toronto Area’s housing market is perhaps best illustrated by the continuation of price appreciation against the backdrop of softer sales activity. Home sales were frontloaded in 2010 as purchasers moved to get ahead of higher interest rates, tighter lending criteria, and the introduction of the Harmonized Sales Tax mid-year. Economic uncertainty cast a shadow over home-buying activity during the summer months. The market finally returned to more normal levels of activity in the Fall – and that pattern is expected to continue into 2011.
Slow but steady economic recovery is forecast for the Greater Toronto Area moving forward. An improving employment picture and healthier outlook should serve to bolster home-buying activity in the new year. Immigration – which has had a major impact on housing in the past – will continue to be an integral part of the market in the future. Low interest rates – expected for much of the year – will also attract first-time and move-up activity in 2011.
All in all, it’s a great time to get into the real estate market. I f you are thinking of moving or if you know of someone who is, call me and lets get the ball rolling.
Have a great November!