Signs of “early spring”
Three weeks into 2011, and the January housing market is giving all the signs of the typical “early spring.” In demand areas like central Toronto, the new listings are being reviewed anxiously by buyers looking for the first perfect home of the season.
In one of our Toronto neighbourhood searches, seven homes have sold in the last three weeks, at sale prices ranging from 100% of asking, to 12% over asking price. In another, broader search, we saw that 13 out of 25 homes sold went over their asking price, during the last seven days.
These results are not unusual in spring markets. Our chart (above) shows a projection of what GTA sale prices may look like during the next 12 months. The dotted line is simply a projection of average month-to-month changes… the real figures will doubtless vary, with some months going higher and others lower.
Interest rates continue to be low. The federal government’s recent rule-tightening will remind home buyers to be prudent, while directly affecting only a small percentage of borrowers. Given the mixed signals coming from the US economy, it’s a good bet that higher rates – when they do come – will be seen as a welcome sign of brighter days ahead.