You might remember that earlier this year, we talked about the average price of a Milton home going up by $186 per day. And we all gasped and couldn’t believe it.
Well, guess what? It’s almost the end of the year, and I ran the numbers again.
$220 per day. In Milton.
That’s $1,540 per week.
And $6,673 a month.
Assuming someone is in a 40% tax bracket, a person would need to make more than $112,000 per year in gross income at their job just to keep up with the pace of appreciation.
Never mind paying for property taxes, clothing, food, transportation…
I never would have believed it, but the numbers as reported through the Toronto Real Estate Board don’t lie.
You want to hear something even crazier?
The average property in the Greater Toronto Area (from Bowmanville to Burlington, all the way up to just south of Barrie) has gone up on average $415 per day in 2016.
So take whatever is happening in Milton and you can almost DOUBLE it in some parts of the GTA.
Some of it has to do with the graph above. The trend for the last ten years has been a steady decline in interest rates, which has fueled massive increases in prices.
Along with land regulations like the greenbelt, foreign investment & lower currency value, immigration into Canada and the high cost of moving (which has created pockets of huge demand but no supply in some areas), interest rates have been the gasoline on the real estate fire for the last few years.
I just can’t believe how quickly things have shot up. Most of our clients feel the same way.
What do you think will happen in 2017? What does your crystal ball say? We’d love to hear your best prediction!