Written by Morteza (Morty) Sadeghi
The latest statistics don’t lie and they’re telling us that the Toronto Real Estate market is still on that upward trajectory that some analysts said was sure to stall and start on a downward slide. The first two weeks of this month saw a spike when 2,767 sales were reported.
That’s not the full extent of the good news either. The average sale price for a home in Toronto was up to $547,107 and if that sounds impressive, there’s even more. The same period last year saw the same average home price at $507,474 dollars. Jason Mercer, TREB Senior Manager of Market Analysis, was quoted recently in the Toronto Star as saying that price growth well above the inflation rate would be the standard for the rest of 2014.
Still, it’s only fair to be forewarned. There are those beating the drums and making dire predictions for next year already and at least one of those is a name we should all be paying attention to.
The TD Bank has already started to predict housing prices could start to slip in 2015. TD economist, Diana Petramala, recently said an interest rate spike or some economic speed wobble could send the values of resale homes down 25 percent. The TD is predicting generally that next year will be the start of a downturn for Toronto and the rest of the country where real estate is concerned.
It’s important to keep in mind many of the recent indicators have suggested the national picture for real estate is more attuned for a soft landing, but those looking for a theoretical bubble to burst continue looking up for the sky to start falling.
