It has been an interesting month with respect to the debt worries in the USA and Europe which seem to have caused a stock market correction. It begs the question: “How will it affect real estate in Toronto?” Current world economic woes may have a positive influence for real estate in Toronto the Good. A skittish stock market may encourage investors to park their money in real estate. It may also influence current real estate investors to maintain their holdings and not cash out. The positive outcome from this is the announcement from the US Federal Reserve stating they will maintain low interest rates for the next 2 years. The economic uncertainly will put great pressure on the Governor of the Bank of Canada, Mark Carney, to hold interest rates at current levels which will maintain the busy real estate market in TO.
Home sales were up by 23% in July compared to July 2010. The average selling price was up by 10% compared to last July.
“If the current pace of sales hold up, we could see the second best year on record under the current TREB market area”, said Toronto Real Estate Board President, Richard Silver.
Home Market Indicator
July 2010 July 2011 % Change
Sales 6,425 7,922 (+23%)
Average Price $418,675 $459,122 (+10%)
We are still experiencing a strong seller’s market with no signs of change in the near future.
It is also important to note that the economy in Toronto is very strong which always bodes well for real estate.
Roger Gallibois, B.Sc., P.Eng.