Market: Detached Houses
The price of detached houses in the GTA has gone up significantly over the past month and is continually rising due to increasing demand. The average price of a detached house in the GTA has risen from $1.07 million to $1.27 million from January to February. The new average price is a 32.5% increase from last year’s average. One demand determinant for the increase in price is “Buyer’s Expectation’s”. Due to the present low-interest rates, many buyers speculate that there will be an increase of interest rate in the near future. In consequence, there is an unhealthy surge of demand to buy these houses while the interest is still low. Another determinant is “Number of Buyers”. Since there is an increase in the number of people willing to purchase a detached house, the demand increases accordingly. As a result, the demand curve shifts right, and the price and quantity of houses increase.