What’s In Store For The 2012 Real Estate Market?

Last month, the Toronto Real Estate Board posted the above video to their YouTube channel. In the video, Senior Manager of Market Analysis, Jason Mercer, takes a look back at the 2011 real estate market and a look forward to what we can expect in 2012. Warning: the video is over 25 minutes long! Not to worry – I sat through the entire thing myself and have summarized the main points below (you’re welcome).

1.  Where We Are At

  • We’ve seen of approximately 8-10% of price growth over the course of the year.
  • Inventory has been tight, resulting in a Seller’s Market.
  • Record-low interest rates have fuelled a very active market.

2.  Interest Rates

  • Rates are likely to remain somewhat flat in 2012.
  • This is a reaction to what’s happening, economically, south of the border and in Europe.

3.  Jobs And Income Growth

  • The unemployment rate has been moving lower, but this trend is flattening.
  • A 2% growth in income is expected in 2012, roughly in line with inflation expectations.
  • The average Toronto household income will increase from approx $102,000 in 2011 to approx $104,000 in 2011.

4.  Resale Market Outlook

  • An increase in the number of sales, from 90,000 in 2011 to 92,000 in 2012.
  • This increase in the number of sales is in line with the long-term trend for population growth.
  • The number of new listings should rise from 145-150,000 in 2011 to 160-165,000 in 2012.
  • More sellers will decide to list their homes in reaction to the strong price growth seen in 2011.
  • More listings = more choice for buyers = slower price growth than what we saw in 2011.
  • An increase in the average price from $460,00 in 2011 to $485,000 in 2012.
  • This amounts to approx 4.5% price growth, year-over-year.
  • Moderate price growth will keep affordability in check.

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.

About the Author

About the Author: .

Subscribe

If you enjoyed this article, subscribe now to receive more just like it.

Post a Comment

Your email address will not be published. Required fields are marked *

Top