Home prices will continue to soar in 2017, with the Toronto Real Estate Board predicting a 10-16% increase in prices, with the average cost of a home reaching just under $800,000. In many parts of the city, prices will increase by over 20% and this surge is in many cases forcing buyers into the more affordable but still sizzling condo market. Adjusted for inflation, Toronto house prices are now at their highest peak in history.
A house bought in 1950 for $50,000 would now sell for over $750,000. Our stable society, strong economy, and our warm welcome to new Canadians has contributed to an unshakable upward trend line for prices. However, when prices have gone higher than that historical upward trend, corrections have brought them back down to reality, every time. There have been three such corrections in Toronto real estate history, as the graph below shows; one in the early 60s, one in 1974, and a massive 40% real reduction in prices from 1989-1996.
We are now riding the biggest peak trend in Toronto house prices, and eventually, the market will correct this. The stars have never been better aligned for those considering selling their home for whatever purpose than they are now. If you are a home owner looking to sell, this is the ideal time to do so.
Have you sold your home, and now can use an advance on your equity before closing day, perhaps you need money for renovations? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!
*Subject to qualification.