2011 Market Prediction
Below are the 6 main reasons why 2011 will possibly be a good year for Real Estate and the economy at large. Should these factors hold, we should expect a strong and stable real estate market across the GTA.
1. Interest Rates. At a historic low and all indications from the Bank of Canada point to them staying low at least 'til the end of 2011. This alone will continue to drive the real estate market higher.
2. Stable Jobless Rate. Unemployment remains at 8% and is not forecasted to go much higher. More and more US chains are trying to expand into Canada and many locate in the GTA. Although our dollar is almost at par with the US our manufacturers have remained competitive.
3. Fewer Mortgage Defaults. Even with predictions that US home prices will continue to fall, less than 1% of all Canadian home owners face the problem that their home values are less than their mortgages. This fact will contribute to real estate prices remaining stable.
4. Less Land for Development. There is a growing shortage of land available in the GTA for new housing developments. With Lake Ontario to the south and a protected greenbelt to the north vacant land in the GTA is very scarce. As a result its cost will continue to escalate and this will drive up the price of a new homes. This will also limit the choices for buyers and as a result will also drive up the costs of a resale home.
5. Record Immigration to Canada. This will continue as people from all over the world recognize the high quality of life available in our country. Most of this immigration is to our three major cities and Toronto receives more than Montreal and Vancouver.
6. Safe Haven. Canada is one of the safest and most secure countries in the world. This alone attracts investors especially from nations that have troubled political situations. Toronto's already multi-cultural make up makes it a location most favoured by these investors. Many make their purchases site unseen.
All of the above points to a very positive 2011 Canadian Real Estate market and particularly in the Greater Toronto Area. I would suggest that perhaps you can inform your clients of this. Potentially any current buyer clients you are working with or a past client who may be looking to move up or invest in another property still have some excellent opportunities and ample time to invest in real estate in the GTA.
Quote of the month:
Plan your work. Work your plan.