5 Reasons Why 2015 Is A Great Year For Real Estate

2015 Expected To Be STRONG Year For Real Estate In Ontario.

Find Out How YOU Can Stand To Benefit….

We are one month into 2015 and there are many signs that this year is going to be an exceptional one for real estate in Ontario. January is often a prime indication for how the rest of the year is going to turn out. Based on the wide array of events going on in the world, ranging from the economy to political circumstances, many economists and banks are predicting real estate to do very well over the next year. Here’s why, and how you can benefit!

1) The Falling Canadian Dollar

  • The Canadian dollar has fallen over 20% frloonie-reverse-viewom it’s high.
  • Sitting at under 80 cents to the dollar, a weaker Canadian dollar benefits the manufacturing industry in Ontario.
  • The cost of shipping to the US falls, increasing profit margins to the manufacturer.
  • This means Ontario is more appealing than it has been in over 6 years for existing manufacturers (hiring new employees), or to new manufactures who want to set up new factories here.
  • More jobs means more people are buying houses which translates into higher demand, and higher prices.

2) Lower Oil Prices

  • Prices of oil have plunged over 55% from this past summer and gas has followed accordingly going from $1.30 per litre to under 90 cents per litre in Ontario.gasprices1
  • Lower¬†gasoline costs are expected to put over $1000 of extra cash into the pocket every family in Canada this year.
  • This translates into billions of dollars of extra cash being injected into the economy this year.
  • While low oil prices hurt Alberta, they actually help Ontario by reducing transportation costs on businesses, and boost consumer spending.
  • With more money in their pocket, businesses feel inclined to hire more people. Consumers feel more confident to buy other things, including houses.
  • As sad as it is to see people lose jobs in the oil industry out west, many of these people are coming home to Ontario and many will be looking for work, as well as homes.

3) A Stronger US Economy

  • The US economy is churning out 200,000 new jobs per month on average with an unemployment rate that is dropping steadily.american-economy.gi.top
  • A stronger US economy has traditionally benefited Ontario.
  • With Americans spending more money, demand for products is higher. This means Canadian manufacturers selling to the US are going to be very busy and hiring to keep up with the demand.

4) Low Interest Rates

  • interest_ratesThe Bank Of Canada decided to cut the prime interest rate by 0.25 points last week and economists speculate another cut could be coming.
  • This means mortgages will become CHEAPER to many, especially first time buyers.
  • Cheaper mortgages will allow people to afford homes easier.
  • Rates are now approaching ALL TIME LOWS. Owning a home has never been so easy.
  • Economists are now not expecting rates to rise until at least 2016.

5) Higher Consumer Confidence 

  • real-estateConsumer confidence in Canada rose 6.3 points in December to 88.9, a positive sign for the Canadian economy
  • With the lower price on oil, the improving US economy, the lower Canadian dollar, and the low interest rates, expect consumer confidence to remain high especially in Ontario.
  • High consumer confidence translates into people being more comfortable to make big financial moves such as buying/selling a home.

Based on these five factors, real estate experts are expecting 2015 to be a great year for real estate especially in Ontario. Whether you are thinking of buying or selling there are strong arguments to do it now instead of waiting.

For more in depth information, or if you have questions about possibly making a move in the Barrie, Alliston, Newmarket, Orangeville, Bradford, Angus, Tottenham, or Innisfil area please let me know! Things are heating up in the market already and it’s only getting started.

Written by Travis DeMaria, Sales Representative at Royal LePage RCR Realty. 

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