2014 was an incredibly busy year in the Toronto real estate market. According to TREB, there were nearly 93,000 transactions reported last year. That's almost 6,000 more than the previous year. Competition was fierce and prices rose significantly. For all home types, the average price increased by 8.4% in 2014.
The population in the GTA continues to climb, and most new residents choose to become homeowners if it is within their means. Buyers are displaying a high level of confidence in the Toronto real estate market, and many are making efforts to pay off their homes quicker than their required amortization schedule. Despite the steady increase in home prices, low interest rates have made borrowing very affordable for the average household.
Low inventory in 2014 held back many qualified buyers, many of whom will be anxious to make a purchase this year. Cautious buyers who held back waiting for a price correction are now realizing that they may have passed up many good opportunities. Consumers recognize that prices are rising and realize that they need to get into the market as soon as possible.
Even the condo market, which has been a popular topic of speculation due to the increased supply, has experienced steady value increase. Downtown, in particular, remained a popular destination for young professionals who are willing to pay a premium to be in the heart of the action.
Thinking about investing in real estate? There is no shortage of opportunities in the GTA and the surrounding areas. Market rent remains extremely high this year across the city. New and nearly new condos and townhomes are an easy sell when searching for potential tenants. With a healthy economy and a steady job market, there is a large pool of great tenants to choose from. Owning an investment property takes some patience, but it is well worth the payoff down the road.