Toronto Home Sales Forecast to Hit Record Sales, Prices in 2016

Canada’s biggest city is set for another record year of homes sales in 2016 if interest rates stay low, according to the Toronto Real Estate Board.

The agency forecasts as many as 105,000 homes will trade hands this year, compared with 101,299 sales in 2015, with prices as high as C$665,000 ($458,000). That would be 6.9 percent above the 2015 average of C$622,217 for the city.

"Whether we see the second best year on record or a second consecutive record year will largely depend on the direction of borrowing costs and the availability of listings, particularly in the low-rise market segments," said Jason Mercer, the board’s director of market analysis.

Record low borrowing costs have help stoke home buying for at least the last five years, with Toronto and Vancouver leading sales and prices. That trend is set to continue as the country’s central bank mulls a potential interest rate cut Wednesday.

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