CURRENT MARKET STATUS

By Marcus Assalone, on January 10th, 2012

Real Value Forecast: House prices in the GTA will fall due to slow growth. Average home prices will be 1.2% lower for 2012. TD Financial forecasts home prices to be 11.5% lower by July 2013 . CMHC forecasts sale prices to be 0.4% lower.

Mortgage: Mortgage rates are expected to rise in the short term but should still stay low for the long term.

Annual Inflation Rate : 2.1% GTA Residential Rental Vacancy Rate : 2011: 1.4% 2012: 1.3% (Projected)

Bank of Canada growth rate - 2009: -2.6% 2010: 2.4% 2011: 2.3% 2012: 2.8% (Projected)

Resale House Data

Some material Source: Statistics Canada, The Bank of Canada,

Housing Price Pressure Indicators

Net Migration

The GTA increased population by 474,086 in the five years from 2001 -2006 and is expected to increase by 2 million people in the next 25 years.

Interest Rates

Historical low interest rates are pushing the value of real estate up.This pressure is expected to drop soon.

Unemployment Rate

High unemployment at 7.7% (December 2010)This downward pressure has eased in the past year.

Inventory

There are not enough properties available for sale to satisfy the demand.

Dollar

High CAD vs USD makes GTA goods unattractive in their market. US goods are flowing into GTA at the expense of GTA manufacturers and retailers.

Economic Activity

The economy has been relying on stimulus money which will be coming to an end.

Historical Data

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