The Toronto Real Estate Market will continue to sizzle through 2017 despite mortgage “safety tests” meant to cool the market, despite mortgage rate hikes, despite talk of prices being unsustainable and despite naysayers forecasting a slowdown…how long have they been saying that?
According to the Toronto Real Estate board, the GTA had a record year for sales in 2016, up 11.8% from 2015 and prices for all home types combined climbed by over 17% from 2015. New listings were down by almost 4% year over year and the strongest rate of growth was for condos followed by detached houses.
But WHY?? Affordability is the buzzword these days and it pains me to see both First Time Buyers struggling to get into the market and Move Up Buyers who’ve outgrown their homes struggling to find something suitable to buy regardless of the benefit of strong equity in their current homes.
But really, it’s the same old story – a severe shortage of listings combined with ravenous and highly competitive demand. Then there are the perpetual low interest rates and healthy job market just to ramp things up a bit.
What’s necessary is for government to start addressing the supply issue and loosen restraints on policies and legislations that don’t work so that developers can put up new houses without the usual red tape. What is also required is for government to take a good look at the reducing the fees and taxes that inevitably get passed on to the consumer.
There continues to be debate regarding hefty Land Transfer Taxes which have eroded affordability for all Buyers, not just FTB’s.
Tips, Quips and Predictions from My Crystal Ball!
- The Rental Market will become crazy as people struggle with affordability issues
- The Condo Market will be even crazier – Just Get Into The Market!
- Condo Townhouses will be hot, freehold towns will be even hotter
- Detached Houses will be priceless jewels
- Inventory Levels will be at all time lows
- Scarborough, Mimico & Lakeshore West will be the new hot areas and will boast bidding wars just like everywhere else.
- Downsizers, Moving out of Towners, Investors Cashing Out will be the few that sell
- Interest Rates may rise but it won’t be enough to stop the demand so lock in.
- Buyers can’t afford to sit on the fence so either dive in or lose out
- Homes are expected to rise by 10% in 2017 but expect that number to be much higher for downtown and central core established neighbourhoods
- The Trumpification of the world will prompt a lot of Americans and Europeans to really think Canada!
- Toronto will continue to be in huge demand as population growth soars by almost 110,000 people/year through 2019.
More on Vancouver vs. Toronto in my next post! Stay tuned!
Average 416 Prices for December 2016
Detached $1,286,605 up 23.7% from December 2015
Semi-Detached $808,920 up 8.4% from December 2015
Townhouse $662,959 up 23.5% from December 2015
Condominium $466,592 up 16.6% from December 2015
Sources: TREB Market Watch + Mid Month Statistics January 2017, Royal Lepage House Price Survey January 2017, RealNet Canada Inc.