Toronto Spring Market
Toronto might be in the grips of winter, but the Spring market for Toronto Real Estate is just getting started this week. The holiday season tends to be a very quiet time in real estate. By the second week of January, people are putting the holiday season behind them and making plans for the coming year. Already we are seeing a pick-up in the number of homes being listed for sale. This is the most active time for the Toronto market, with the number of homes trading hands rising each month through to June. With more buyers in the market at this time of year, home sellers tend to take advantage of this time to market their homes. Thus, we see the best and nicest homes come up for sale through the Spring time.
Toronto Home Prices
The outlook for the coming year in real estate calls for a fairly stable market, with prices rising modestly in the 3% to 5% range. Toronto enjoys a modest steady growth in real estate values. Rising world oil prices will have an impact on people living in the outer-suburbs who will feel this in their cost of commuting. Higher oil prices helps Toronto real estate prices as more people want to live closer to their place of work. Most especially downtown condos and centrally located homes.
Interest Rates and Mortgages
The Bank of Canada has backed off of further increases in the key rates they control. The indications are that we will not be seeing further rate increases until the Canadian economy strengthens. While the Bank would like to see higher rates, they are being cautious not to raise rates for fear of halting the fragile recovery now underway. Economists are calling for further rate increases towards the end of 2011. Thus the borrowing costs for mortgages remains very attractive. To counterbalance this, the Bank of Canada has tightened the rules to qualify for a mortgage, to ensure Canadians do not take on more debt than they can carry. Knowing that rates will be higher in the future, they don’t want consumers to be unable to afford their mortgage payments.
Wishing you all the best for 2011.