Looking Forward: What's In Store For The 2011 Real Estate Market?

     The Toronto Real Estate Board recently weighed in with their outlook for 2011/2012 by posting the above video to their YouTube channel.  This video is the latest from TREB in a series featuring their Senior Manager of Market Analysis, Jason Mercer.

In his presentation, Mr. Mercer focuses on 3 key factors in his analysis of where we've been and where we're going:

  • Average home price
  • Average household income
  • Average 5 year fixed mortgage rate

For those of you unwilling to sit through the 20 min video (I don't blame you - 20 min is long...), here's a quick summary of his outlook:

  • The pace of economic recovery has slowed NOT STALLED in Canada. 
  • The market consensus is for fewer rates hikes than originally expected through the end of 2012.
  • Wages and salaries will reach an inflation-level of growth.
  • There'll be an inflationary increase in utilities costs and taxes.
  • Right now affordability remains in check, thus the current average selling price is justified.
  • Price growth will be slower in 2011/2012 (3% growth).

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.