🔮My Best Crystal Ball Real Estate Predictions for 2020!🔮
Here we are in a brand new year in a fresh new decade and it’s no surprise that speculations of what 2020 holds for the Toronto real estate market are front and centre in our thoughts.
While I really don’t have a crystal ball here are a few predictions about what 2020 might look like…
1) STEADY PRICE AND SALES INCREASES After a tentative start to 2019 the Toronto area market performed with consistency and confidence as both sales activity and pricing increased. Bolstered by the region’s strong population gains, healthy economic growth and a robust labour market we are expecting steady price and sales increases to continue through 2020. The Toronto market is very area centric with some areas outperforming others but it’s safe to say that homes in city core neighbourhoods carry the potential for rapidly accelerating appreciation rates driven by high demand and low inventory.
2) EFFORTS TO TWEAK THE STRESS TEST Accessiblity to affordable housing has been an ongoing conversation amidst policy makers and consumers alike. The stress test introduced in late 2017 has had a lasting impact on the market and has made it extremely difficult for millennials and first time buyers to get into the market at all due to escalating prices. The future of our young people is at stake and while we’re not expecting the stress test to be eliminated altogether we are anticipating the rules to be loosened up a bit. Despite a resurgence of these buyers during the second half of 2019, young people shouldn’t have to depend on assistance from their boomer parents or be forced to seek out alternative lenders at high interest rates just to be able to afford a house or condo. We’ll see how this unfolds…
3) INTEREST RATES WILL REMAIN LOW OR GO EVEN LOWER We can expect interest rates to remain low well into 2020 and if the Canadian economy retracts there might be a further cut. The Bank of Canada can’t afford to raise rates if they want to control inflation, boost other sectors of the economy besides housing and pump up Canadian exports. This is one piece of good news for young buyers as they seek to get into the market.
4) RENTAL MARKET WILL BE UBER COMPETITIVE The seriousness of the affordability issue is highlighted especially in the rental market. All levels of government will become more proactive in finding ways to create rental supply in a city desperately in need of more rental properties. Whether it’s a matter of loosening up zoning to allow for low rise multi family builds in neighbourhoods usually reserved for single family dwellings or by making it faster and cheaper for builders to obtain city approvals to develop, the issue is not to be taken lightly.
5) CONDO MARKET WILL BE AS TIGHT AS EVER The upward pressure on rental prices will also result in higher condo prices. Despite what many people think when they see the condo centric changing skyline of Toronto, condos are in extremely high demand as the city’s population swells. Condos have been the de facto go-to property for many buyers who can’t afford a traditional house.
6) THE “TRUSTACT” WILL PASS FOR THE GREATER PROTECTION OF CONSUMERS Replacing the (Real Estate and Business Brokers Act (REBBA) will be the Trust in Real Estate Services Act (TRUSTACT). Key features will include increased protection for consumers with stricter penalties, larger fines and license revocations/suspensions to Realtors not practicing within the bounds of the Code of Ethics, stricter rules to new construction sales practices and the requirement of in depth training protocols for mammoth brokerages currently offering little or no Realtor training. The offer process will be more transparent in multiple offer situations with the disclosure of the contents of offers if both Buyer/Seller agree. Finally, Realtors will be allowed to incorporate their businesses.
7) CONFIDENCE IN LUXURY MARKET Recent bouts of unpredictability in the decade-long financial bull market will likely influence the high end luxury sector of the market. Real estate is seen as a healthy asset which will diversify portfolios, hedge against inflation and act as a buffer against risk. In my opinion investing in real estate regardless of price point is an excellent and stable long term investment.
Sources: Sotheby’s International Realty Canada Top Tier 2019 Year End Real Estate Report, TREB Market Watch, CMHC Housing Market Trend Predictions 2020
Matching her knowledge of Toronto’s eclectic mix of central core neighbourhoods and impassioned by her diverse mix of buyers and sellers, Kimmé is naturally motivated to create a positive and professional experience. Kimmé does her homework and knows her inventory. She is genuine, honest and a straight shooter. Nor is she afraid to think “outside the box” as she employs creative strategies to make dreams become reality.
Born and raised in Toronto and coming from a successful fashion background in design and management, Kimmé could not have met a better match for her entrepreneurial skills than by working in Real Estate. Inspired by her father, well known Toronto clothier to the stars, “Lou Myles”, she learned from a very young age to work hard and strive for excellence.
Licensed since 2005 as a full time Sales Representative and a Broker since 2016, she continues to be proud to be affiliated with the Toronto office of Sotheby’s International Realty Canada and to be part of the highly respected world renowned global luxury brokerage, Sotheby’s International Realty.
Kimmé has received numerous sales awards throughout her career including the prestigious Gairdner, Diamond and President’s Awards. She has completed extensive negotiation training and is among a select group of realtors in Canada to hold the Master Certified Negotiation Expert (MCNE) Designation and the Certified Negotiation Expert (CNE) Designation. In addition, she is a member of the prestigious U.S. based Institute of Luxury Home Marketing and also carries the Luxe – Luxury Listing Specialist Designation. She holds the SRS Designation – Seller Representation Specialist and the SRES Designation –Senior Real Estate Specialist – both accredited programs through NAR – The National Association of Realtors, USA.
Entrusted with the life choices of her clients, Kimmé is truly honoured to have the opportunity to serve and assist others and does so with integrity, commitment and enthusiasm.
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