Toronto Real Estate Market Watch 01/18
2017 was an interesting year indeed! Government regulations had an impact twice during the year – each with opposite effect. First, with the introduction of the Fair Housing Act which put the brakes on many market segments as buyers decided to ‘wait and see’ if prices went down dramatically enough to time the market.
While sales slowed down, prices did not take a nose dive. Much of the speculation of the early spring backed off once potential sellers realized the lottery-like market gains were slowing down.
Then in the fall the new mortgage regulations were on the horizon in 2018 making buyers feel the need to make a move before year end – any slow down that was experienced was starting to be compensated.
The year wound up with steady increase of 12.7% for all home types but the big stars of the year were condos. The consistently strong gains of condos is reflective of the demand for housing in that price point and the ongoing positive economic outlook and population growth in our city. The big question is, how long can those gains be sustainable? Are condo prices going to push so high that they are also no longer affordable?
For the year ahead we’re predicting steady sales and moderate growth baring any more government intervention. Balance is a good thing for sellers and buyers and we look forward to bringing them all together in 2018!
Check out the annual stats as well as the monthly year of year stats for Toronto’s real estate market!