During the last three years the average home price in Toronto has gone up: Between 2009 and 2010, the price of a home in Toronto went from $395,000 to $431,000. In 2011 the average price was $464,000.

The average price of a detached home in Toronto was up by 12% with a price mark of $776,017 in the fall of 2011.

That’s great news for home buyers that purchased their home recently but no so good news for new home buyers who have to pay more money for a home in this city.

Despite of the higher prices, the fall of 2011 showed a seller’s market as the number of homes sold in Toronto increased by 25%. The demand continued being high and listings were sold fast. Even though, the prices were higher, many buyers were shopping for a home to take advantage of the low mortgage’s interest rates.

There are some main factors that affect the Toronto Real Estate market;

1. The interest rates remain at their historical low, lowering the real cost of purchasing a home
2. Economic conditions
3. Young people, immigrants, and foreign investors are fuelling the demand