With 4,446 homes sold on the Toronto Real Estate Board in December, 2014 went down in the history books as the second most active year in the history of the Board with 92,867 sales, just below 2007’s record of 93,193 homes sold.
The average selling price continued to grow on a year-over-year basis in 2014, with an 8.4 per cent increase over 2013 to $566,726. The continued strong price growth is a result of two factors; strong demand and low interest rates which made the purchase of an average priced home affordable, in terms of the average household's ability to comfortably cover their monthly mortgage payments. These factors created a shortage of homes for sale that resulted in increased prices as buyers competed for a limited supply of available homes. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses.
The forecast for 2015 appears to be more of the same, as there seem to be no factors on the horizon that will dampen the demands for home ownership. Toronto real estate continues to be a great investment and many foreigners continue to invest as they see the growth and potential of the GTA.
Having said that, not all properties, areas or condominium projects appreciate the same way. It’s critical to have an expert like myself guide one through the buying and selling process to get the best return on one’s investment.
If you or a friend are looking into the real estate market, give me a call. I will be happy to guide you through the process with the information and experience you need to make the right decision for you and your family.
Best wishes for a happy and healthy 2015.
Your Friend in Real Estate
PS. I am never too busy for your referrals.