2015 Fall Market Forecast

National Highlights:

  • The Bank of Canada’s September 2015 decision to hold the key overnight interest rate at 0.5% will continue to have a positive impact on real estate sales over $1 million.DSC_0059
  • In most major metropolitan markets, the contraction in the Canadian economy during the first part of the year, and speculation that growth may weaken has not affected consumer confidence in the $1 million-plus real estate market.
  • The demand for single-family homes over $1 million in the GTA and Vancouver is expected to remain high, outstripping available inventory.
  • There’s limited supply in the single family home market. As a result, demand for condominiums and attached homes over $1 million is expected to remain strong in the Greater Toronto Area and Vancouver.
  • International demand for top-tier real estate in Canada’s major cities is expected to remain high as volatility in global stock markets and a faltering Chinese economy results in a continued influx of buyers, particularly from mainland China.
  • The upcoming federal election is not expected to impact the $1 million-plus real estate market heading into fall 2015.

Toronto Market Highlights:

  • The GTA (Durhan, Halton, Peel, Toronto, and York) is expected to lead Canadian $1 million-plus real estate sales this fall.
  • The strongest performer of all major metropolitan markets in the first half of the IMG_2673year, high-end real estate in the GTA was characterized by heightened sales volume and multiple offers over the summer months.
  • Sales over $1 million up 53.5% year-over-year in July and August and the $4 million-plus category performed exceptionally well with year-over-year gains of 158.3%.
  • Momentum is expected to accelerate into the fall, given limited inventory, low interest rates, high consumer confidence and the influence of foreign buyers, particularly from mainland China.
  • Detached single family homes are expected to experience continued price gains, pre-emptive and multiple offers, and sales above list price.
  • Heightened demand in the $1 million-plus attached home and condo market is anticipated, while continued competition in traditional luxury neighbourhoods will result in growth in the $1 million-plus market in emerging high-end neighbourhoods in the northern part of the city, including York.
  • Momentum is expected to accelerate into the fall, given limited inventory, low interest rates, high consumer confidence and the influence of foreign buyers, particularly from mainland China.
  • Detached single family homes are expected to experience continued price gains, pre-emptive and multiple offers, and sales above list price.
  • Heightened demand in the $1 million-plus attached home and condo market is anticipated, while continued competition in traditional luxury neighbourhoods will result in growth in the $1 million-plus market in emerging high-end neighbourhoods in the northern part of the city, including York.

If you’re looking to buy or sell property in the GTA, call me at 416-671-5775

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