Toronto Real Estate Predictions For The New Year
Our Toronto Real Estate Predictions For The New Year takes a look at the GTA and what’s in store. It’s not going to get any easier to buy a home in the Toronto region in 2017. The area’s housing prices are expected to increase by roughly 8%.
2016 saw roughly 17 per cent increases across the board but this was much higher than the 2% national average.
Low inventory and high demand will continue to push prices higher.
Even if there is a correction, however, real estate prices will resist going down.
“Move-up buyers searching for detached houses, which cost about $1.3 million in Toronto and $1 million in the surrounding communities, are expected to continue driving the market in 2017”, says Re/Max.
Our company reports using annual year over year statistics which evens out some of the month to month fluctuations that may skew results.
In Toronto in 2016 the average home price (all types) was $725,857. With an 8% increase this would see the average rise to $783,926 in 2017.
There has been a slowdown in production. A decade ago around 40,000 townhouses, semis and singles were built annually. Currently it’s about 20,000 units.
Strong immigration trends, meaning the population will grow by about 100,000 a year, and a strong economy with low interest rates accounts for the market positivity.
Will there be introduced changes?
Changes to financing eligibility in 2016 and early 2017 indicate that the government is showing signs of concern about the rate of increase. How far they are willing to go to temper this growth is yet to be seen.
The strongest growth will be in the Durham region. While Oakville shone in 2016 Durham powered past the finishing line with very strong results that are continuing in 2017.
The extension of Highway 407 and the GO Train System is helping drive buyers willing to commute to jobs in the city and other parts of the Toronto region.
Oakville and Brampton will probably slow somewhat.
High end and luxury homes will continue to be a safe investment vehicle for the well heeled.
Parts of the GTA will see a return to a more balanced market with prices plateauing. Brampton, as mentioned earlier, will likely be included in this.
Mississauga reamains an attractive option because it is not subject to the double land transfer tax.