Dear friends,
According to Toronto Real Estate Board, “home purchases have increased as households have taken advantage of low interest rates and slightly lower home prices.” There seems to be no doubt about it, conditions in the resale housing market have improved significantly.
The real question is, “Why should you buy NOW?”
Here are the facts. Canada announced its immigration policies several years ago. They estimated that 200,000 new immigrants will be allowed into Canada each year until 2015. That’s exactly what has been happening. The majority of those new immigrants end up in Ontario, with the GTA being a focal hub. No surprise to any of us. These new immigrants, for the most part, have committed to buy homes and open businesses. This, combined with low interest rates and reasonable real estate prices has kept and will keep our real estate in demand and increasing in value over time.
How high will our prices go?
In 1972 the average home price on the Toronto Real Estate Board was $32,513
In 1985 the average home price on the Toronto Real Estate Board was $109,094
In 1995 the average home price on the Toronto Real Estate Board was $203,028
In 2006 the average home price on the Toronto Real Estate Board was $353,724
In 2008 the average home price on the Toronto Real Estate Board was $379,347
In 2009 the average home price on the Toronto Real Estate Board was $395,460
In 2010 the average home price on the Toronto Real Estate Board was $433,946
2011 Year To Date - the average home price on the Toronto Real Estate Board is $467,169
Every decade the media said, “Prices have reached their peak, our children will not be able to afford to buy homes.” They were wrong. No one knows how high the prices will go. But at the minimum, they will follow the inflation rate . If the inflation rate stays at 4%, today’s average home prices at $467,169 will sell for $611,419.93 in 10 years. Think that’s crazy? Look above! In 1972 everyone thought $32,152 was an outrageous price for a home in Toronto.
Real Estate is a great long-term investment, and we should all buy more of it! So if you are thinking of buying now or in the future, please feel free to call us and we will be glad to assist you. If you know of anyone thinking of buying or selling please give us a call with their name and telephone number. We promise to take real good care of them for you. Looking forward to hearing from you!
