Toronto Real Estate Market Outlook 2010

Toronto is still the number one city in |North America with the largest foreign born population. It exceeds other big cities such as Los Angeles and Vancouver. There is a steady 1% growth in the GTA population. A positive indicator of steady increase in home ownership. Although the cost of home ownership will rise in 2010 due to the increase of the property tax, mortgage interest, utility cost and, the average sales price has increased by 7% in GTA in 2009.

The household affordability index is still at a healthy percentage of 35%. The index is based on the percentage of mortgage/property tax/utility expenses out of the total household income.

The Bank of Canada had learnt from the late 80s and it will monitor and increase the overnight rate carefully in order to prevent inflation overshoot from occurring.

Consumers remain confident in the first month of 2010. We are also expecting the market will correct itself by having more new listings in later of the year. It predicts the average price trend will flatten going towards 2011. GTA employment will start to recover in 2010 and the unemployment rate will remain above average in 2010 about 8% while the earning trend will remain flat. Average household income will not vary much at about $90,000. The Canadian GDP has experienced a strong recovery at 3% to 4% in 2009 and will experience 2% in 2010. More than 60% of GDP is accounted for by personal expenditure on large ticket items such as cars and housings. It can be interpreted that the housing sales in 2010 will remain strong.

To conclude, we project that the sales price will continue to go up in 2010 and flatten in 2011. The number of annual sales will be very comparable to which of 2009, at high 80,00 to low 90,000.

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[mightymoose21]

Do you hear that?

It's the quiet before the crash.

[simsonc]

@mightymoose21 Today is 2011. This forecast was done a year ago. The market is still strong & healthy.

[donpazer]

@teebrron ... well so far YOU'RE TOTALLY WRONG. We are half way through 2011 and prices have gone no where except UP in Toronto. Waiting, and renting is the worst way to SAVE your money.

[spectrum0590]

Nice outlook! Well, goodluck to your ventures. Thanks for sharing this great video.

[teebrron]

mark carney bank govener, jim flaherty finance minister these guys and their staff have done all they could, and they know whats coming, houses are waaaay over inflated.

[rocboy2006]

@teebrron good perspective. never looked at it that way.

[teebrron]

real estate agents are dreaming in dream land,

the canadian feds borrowed 2 years of housing activity, which means the price of homes WILL drop in 2011 2012,

dont buy now ur home will drop in value!! save ur money rent n wait.

[kalitexnis10]

That piano music is a little overpowering...