The time is almost upon us to ring in the new year and for many of us to embrace change. The real estate market in 2017 has been anything but typical in the GTA and the fickleness looks set to continue right into 2018. There is so much uncertainty as to how the real estate market will unfold as we head into the new year. Royal LePage is forecasting a 6.8% increase in housing prices next year, but Remax Canada predicts a more conservative 0% price change. So, what will it be? Will the lack of housing supply in big-city markets, including Toronto drive prices up?
The City of Toronto continues to strengthen following the market declines after the province introduced the Ontario Fair Housing Plan in April, and in particular the 15% foreign buyers tax and other cooling measures. The foreign buyers tax has had more of an impact in the 905 area where the residential resale market seems to have stalled.
The condo market has been the hottest sector with the average sale price at $555,396 up twenty-five percent from the same time last year. The high demand for entry-level properties like condos is likely to continue in the new year, as well as a tight vacancy rate for renters.
Going forward what we do not need is further government intervention in the market place. As the market continues to recover in 2018, it is expected to be a more balanced market.
Whatever you celebrate this holiday season, wishing you all peace and joy. Take the time to be with your family and friends and enjoy the fun holiday season.
Happy New Year!