Market reports an increase of 16.7% on the average residential sale price reported for this February (TRREB, 2020) at $910,290, in comparison to the average sale price of $779,791 last February 2019, indicating strong signs of growth during Q1. Inventory remaining low and maintaining a competitive playing field for buyers.
Bank of Canada (BoC) initially cut interest rates to 1.25% from 1.75% in an effort to soften the economic impact of COVID-19 outbreak. Today, BoC announced a surprise cut half a percentage point to 0.75% in an effort to buffer the nation's economy from the double hit from the COVID-19 outbreak and tanking oil prices. Lower interest rates = more buying power in real estate. If the expectation is to get people to buy more real estate, with the already short supply in housing, do you think inflation will continue into the upcoming hot spring market? With the Canadian economy closely following our US neighbours, how do you think the Toronto real estate market in Q2 will perform? Comment your thoughts below.
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