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2006/2007 Outlook
Updated: November 14, 2006
Increased inventory of homes in the GTA has created a more competitive market in the lower and middle price ranges much less of a sellers market in the North end of the city.
Average home prices have risen considerably in the past year (+/- 9% in the GTA), even more so south of the 401 in the city core. Prices should increase slightly in the city but not as much as in 2006.
Interest rates are expected to rise slightly in 2007. The real estate market will not be affected by slight increases in rates; prices should rise as a result, however slightly.
First time buyers still largest buyer in the market, but the luxury market is showing slower sales volumes and should continue slowing into 2007.
Move up buyers are also taking advantage of low interest rates having realized increased equity in ther homes may be more hesitant in 2007.
Sales in the Million dollar + range have sold well in 2006 and volume in the Million dollar + range to decrease in 2007, this has changed people's opinion of what a luxury home in the GTA really is.
Consumer's more hesitant to buy before they sell which equals signs of things to come?
Tips:
Most agree that lending rates will be stable in 2007. Nobody is really sure to what degree.
Pricing your home north of the 401? Be sharp! Inventory is moving slower and buyers are more price sensitive in these areas. We are also seeing higher inventories.
Move up buyers do not benefit when prices are higher. The difference between the purchase and sale widens as prices increase. Alternatively, the bigger they are the harder they fall.
House prices expected to rise slightly in 2007; less so than in 2006.
Rule of thumb in Real Estate: Interest Rates Rule!
Opinions presented here are from this Realtor's point of view only… May the Magic of the market always be yours!
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