Forecast and predictions for Real Estate market in Toronto for 2019
Saturday Dec 15th, 2018
I don't have a crystal ball, and even the most meticulous economists are sometimes not sure.
So here is my forecast... Despite predictions by some economist, that market might stop growing I think that Real Estate Market in Toronto will start to grow in 2019
Trend in Toronto is a little different in comparison to rest of the country, due to the fact, that almost all immigrants coming to Toronto.
Even with all government efforts to suppress demand for properties with introducing new Stress test rate in January of 2018.
So demand is still huge. I personally had 3 offers for the property in Central Etobicoke priced $650,000. All together owners received 24 offers and property was sold for $1,050,000. Which is $400,000 over asking price.
Situation with Condo market is similar. It was common this year to see 20 offers for one single condo 1 bedroom 500 sq feet. I'm not even talking about rental market in Toronto, demand for cheap rent is huge, which brings investors lots of hope.
Based on TREB statistics prices started to grow this fall. Supply of homes is still low as lots of people are just waiting to sell it later, and demand is never stopping.
Lots of Lenders on the market started to offer many diff rent products to help potential Buyers like :30 years mortgages, stated Income programs. Some of the Landers are not obligated to use stress test rate as guideline therefore could maximize the purchasing power, some are taking into account rental income and not to mention even CMHC introduced easier access to their mortgage insurance for self employed in 2018.
Even with not so stable situation in US, recent lay offs at GM , NAFTA changes etc. there are plenty of Buyers who would like to buy a home in 2019. I personally have Buyers in waiting program with thousands of buyers waiting for great opportunity to present itself.
Here are Reasons why people are buying, based on CMHC Survey:
Wanted to buy the first home 56%
Felt was financially ready
Accumulated sufficient Down Payment
Had planned purchase for some time
Greater control over living situation
Take advantage over low interest rates
Needed a larger home
Improve long term Financial Stability
There are other reasons like Source of extra Income, fixer uppers and Flipping for extra cash in a long term great investment vehicle and so on.
Due to the fact that based on statistics that work force is getting older in Canada, we are transitioning to workers aged 55 years and older to be the mane work force, as opposed to 25-55 years few years ago. If you are 55 years old you don't want to go to your boss and ask for raise, and put yourself at risk, you just want job stability. So there is no significant salary raises, and no inflation jumps, interest rates are not going up drastically. All of those are typical steps which cause economical crisis cycles.
This is one of the main reasons why we do not see deep dive in real estate market now. And its more or less stable.
In my opinion Bank of canada might increase prime rate by 0.25% in 2019 again.
So happy shopping for first time home Buyers , Investors and upsizers next year, its perfect time to buy a home in Toronto
Real Estate Sales Representative
Right at home Inc Brokerage