Real Estate Homeward Blog
In my April update, we were sensing that a very hot spring and summer real estate market was upon us, however, I certainly did not expect it to be as strong as it was. We had both record sales and record prices as outlined on the back of this letter. Toronto is one of a few cities, globally, where prices have risen during the past 12 months. Many buyers and sellers have been asking me: �Why is the real estate market in T.O. so busy considering the global economic issues at hand?� This is a tough question to answer and I can only list many possible reasons:
- Historically low interest rates
- Build up of buyers
- Stock market is rebounding and creating confidence
- Media over dramatized the drop in price and reduction of sales in Toronto
- Inflation is under control
- Governments are spending on infrastructure
- Unemployment is at 9.3%-During the Great Depression unemployment was at 22%
- 53% of renters plan on purchasing
- Cooler spring/summer creates a better climate for home sales
- 90,000 immigrants coming to Toronto each year
- Inventory of available homes is low
- Few power of sales
- People need to live somewhere
- Easy to receive mortgages
- Many first time buyers prefer to buy a condo or a starter home than pay rent
- Public view real estate as an important investment
The major shift in the economy seems to have motivated Mark Carney, who is the Governor of the Bank of Canada, to declare that the recession in Canada is basically over. This optimism is echoed by the people of Canada who as a whole feel extremely secure with their financial situation and at the same time Canadians are gaining a reputation of being prudent investors and spenders by the international community.
It sure is an interesting time, but we can at least conclude that real estate, in Toronto, has provided incredible stability in a precarious time.
RBC is currently offering a 5 year mortgage variable rate of 3.3%. Please contact their Mobile Mortgage Specialist Alex Castrinos (416-894-7531) for further information.
Roger Gallibois, B.Sc., P. Eng.
Royal LePage Homeward
Independently Owned and Operated, Brokerage
This is not intended to solicit buyers/sellers under contract