The final statistics are in for the Toronto Real Estate market for the year ending December 2011. Across all of the GTA, the Toronto Real Estate Board reported that there were 89,347 properties that changed hands during the year. That’s an increase of 4% over the number of homes sold in all of 2010.
The average selling price for 2011 was $465,412 – up 7.9% year-over-year.
Key factors influencing the market this year:
Exceptionally low interest rates throughout the year have boosted buyers’ buying power, Making it possible to afford significant mortgages. Looking ahead, the only place for rates to go will be up. At some point the Canadian economy will strengthen along with other leading countries, allowing the Bank of Canada to restore a more normal level of interest rates. The first jump will likely lead to a consumer rush into real estate, to lock-in a home mortgage before it is too late. Subsequent increases by the Bank of Canada will tend to have a dampening effect on consumer confidence.
Despite strong buyer demand to purchase properties, there has been a shortage of home sellers in 2011. This led to an imbalance in the market, in which multiple offers and bidding wars were common. Too many buyers were all competing to purchase the homes that did come to market in the year. This supply shortage helped to push prices higher.
Let Ralph Evans know if you’d like to have a more detailed look at the Toronto Real Estate Market statistics or to get a better understanding of what they mean for your particular situation.