GREATER TORONTO AREA
The residential real estate market in Canada’s largest city continued showing healthy market activity in 2014, with both the average residential sale price and the number of transactions showing an increase over the previous year. Inventory continued to be very low among freehold properties and average days on the market fell from 25 the previous year to 23. The average residential sale price is projected to increase four per cent in 2015. With rising prices and limited inventory, potential buyers will need to be well prepared and informed when entering the housing market next year.
In the past, modest, but under-valued, homes sold for hundreds of thousands of dollars above asking price in some areas of the city and the effect was that buyers entered the market with no certainty about what kind of home they could afford.
More realistic pricing in 2014 has inspired confidence among buyers—a trend that is expected to continue in 2015.
Toronto should remain a seller’s market, although the condominium market is projected to be more balanced as developers release inventory and investors seek to unload their units. Many first-time buyers should continue to look to the condominium market, attracted by affordable options in convenient locations.
The recent municipal election has brought a feeling of stability to the city, which generally proves well for local real estate. With political stability and the city set to be showcased by the 2015 Pan AM Games, pent-up demand may result in strong price appreciation in the latter portion of 2015. The luxury market will continue to display strength, as wealthy buyers are comfortable