Hi, it’s Ksenia Warhol, and I always give my forecast for real estate market, so traditional forecast for 2020
Here are few predictions-Prices for homes will continue to grow . why I think so? Here is why!
Increased consumer confidence could be a key factor affecting the housing market in 2020
• 51% of Canadians are considering a home purchase in the next five years, up from 36% at the same time last year
• Only two in 10 Canadians say that the mortgage stress test negatively affected their ability to purchase a home in 2019
I think government will increase the Incentive for first time buyers from 585 k to 800k
Interest rates potentially could experience a cut. Global economy is not doing so well. Just look at the Trump situation. And we have to keep Canadian dollar low, so I would expect interest rate cut in 2020.
Average price for homes in Toronto would go up to 900 k at some point, it’s hard to predict in what month exactly for me, but we will get there in 2020
Price for pre construction condos per square foot in Mississauga, Markham, Vaughan, North York, anywhere close to subway or Go transit will grow to $1000 per square foot.
Price for downtown town core will get to $1500 per square foot. Few projects in 11 Yorkville, King Toronto and United did get to $1200 to $1400 in 2019, so in my opinion this trend will continue to grow next year.
Intensification and infill are other 2 trends which will continue not only in 2020, but from now on.
Demand for homes is huge, so builders will look for every little piece of land to build new homes, knocking down old smaller homes and building as many as possible new units. There is another trend, city is only giving permits for builders if they will build social housing units in the same complex. There are few project present in Toronto where lower floors of building is social housing and upper floors are condos. I think This type of mix will will continue to grow, as city cannot keep up with demand for affordable housing.
Also wanted to mention that will might see pre construction cancellations. labour, materials, taxes, levies and permits, delays in construction are getting more expensive, so some of the Builders will not be able to complete their condo projects and it will result in cancellations or bankruptcy.
One of the most important factors for growing prices in Toronto is more than 100,000 people are emigrating to Canada each year. Big number is settling down in Toronto GTA, in few years they want to buy a home.
So I believe that prices will continue to grow in 2020.
It will be multiple offers situation for lots of homes next year.
Hope it was helpful. My team and I we are experts of Toronto market, and will be more than happy to answer any questions you might have, 416-829-0340 www. Artinrealestate. Ca
Happy new year all the best wishes in 2020. Cheers
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