Toronto Real Estate prices are starting to slow in their decline from previous increases over the last five years. A recent Royal Bank report on Canadian housing trends and affordability indicated that there will be further declines but no major Real Estate market corrections.

A combination of a decline in home prices and lower interest rates on long term mortgages will help to improve the Toronto resale market. Affordability is a key factor in the home buying experience and RBC states that buying a standard Toronto Condo with an average price of $287,000 would require a household income of $70,000. Buying a standard Toronto Townhouse with an average price of $363,800 would require a household income of $87.200, both estimates on a 25 per cent down payment and a 5 year fixed rate over a 25-year amortization.

At the beginning of this year many buyers were sitting on the sidelines but now with the average Toronto home prices and interest rates lower they are taking advantage of the opportunity now available to them.

Related:

Toronto Real Estate Prices To Rebound 2010

Toronto Real Estate Spring Thaw