In the words of the Globe & Mail, “Toronto’s Housing Market Get’s Off to a Surging Start in 2015.”
In the City sales were up 1.0% but prices increased by 5%. What was good to see was the level of new inventory increased faster than sales, at 9.0%.
For January the average price of a home in the City was $581,477. The average price for 2014 was $566,696 and it won’t be much of a surprise if we get very close to or exceed $600K in 2015!
While prices will increase, affordability will be helped with reduced interest rates. However, buyer’s should be cautious not to over extend themselves in a low interest rate environment, as rates will eventually go up, and with them the cost to carry a home. Current mortgage rates really are unprecedented, so it’s a good time get a mortgage and pay it off as quickly as possible!