2011 ended strong, with the Toronto Real Estate Board reporting 4,718 residential properties sold for the month of December. This represents a 10.1 percent increase compared to the 4,286 properties reported sold for the same month in 2010. The market landscape remains unchanged. Historically low mortgage interest rates and strong buyer demand fueled the Toronto resale market throughout 2011.
As forecast, 2011 proved to be the second best year on record, behind only the 93,193 residential properties reported sold in 2007. The 4,718 sales for December brought the total sales for the year to 89,347 properties sold. The next best year for reported sales was 2009, with 87,308 properties sold. By all accounts 2011 was an exceptionally strong year.
Forecasts for 2012 are mainly positive. The Toronto Real Estate Board and Canada Mortgage and Housing Corporation’s view is that because of broader economic conditions prices will increase moderately accompanied by slightly lower sales. Sales should see about 85,000 properties sold, and prices will increase over the year by a modest 4 percent. In 2011 prices increased (annualized) by 8 percent, from $431,276 2010 to $465,412 this year. Toronto has managed to avoid the housing market pit falls that have plagued many other jurisdictions, particularly the United States. Markets in the States have been in decline since 2005. If the forecast for 2012 proves accurate, and there is every reason to believe they will, we will enjoy a strong market, punctuated by moderate price increases, which in conjunction with low mortgage interest rates will ensure continued affordability.
To read the full update, please visit:
http://www.thechestnutparkblog.com/2012/01/toronto-market-update-december-2011/
