Toronto Real Estate House and Condo Sales Year End 2014
The greater Metro Toronto Area market of resale homes has continued to defy all the apparent odds by sustaining its 17th year of positive appreciation. Despite continued tightening of mortgage lending guidelines in an attempt to slow down the Toronto real estate market and the shortage of houses throughout the year, 2104 was the second best year on record.
When one recalls how the fierce winter severely slowed the first 4 months of real estate in 2014, it is quite something to comprehend that the year ended with a +6.7 per cent increase over the 2013 sales figure of 87,049 and concluded the year with 92,867 homes sold.
That was only 326 fewer properties than the record year of 2007 when 93,193 homes were sold. 2007 was the year before the Land Transfer Tax (LTT) was introduced to Toronto almost doubling the taxes in the 416 area code. To put that in perspective, if you buy a home today for $1,000,000 in Toronto, the LTT is $32,200. Outside Toronto, anywhere else in Ontario, the LTT is only $16,475. No surprise then, why 2007 was a record year when many folk rushed to beat the tax.
So what created the almost record year for 2014. Same as has been for the last several years. Almost record low interest rates, a moderately strong local economy and sustained high levels of new immigrants arriving in the Greater Toronto area. In fact, if there had been normal levels of inventory, this past year would have shattered all records.
The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726. (See chart above)
Consider that in 2004 the average price was just $315,231. That's an 80% increase in 10 years! With there being no imminent change in interest rates on the horizon, coupled with the continued rate of immigration to Toronto and the shortage of supply, prices are expected to increase through 2015. Believe it or not, in central Toronto, the average price for a single family dwelling now starts in the $800,000's.
This writer, having recently traveled through parts of Europe, and after reviewing real estate prices in many of the major European cities, Toronto Real Estate still seems like a bargain.
If you are an investor, or are looking for a house or condo to live in sometime during 2015, you should considerStarting Here