2018 Toronto Real Estate Housing Price Forecast

It is expected that in 2018, most housing markets in Canada will enjoy a cooler first quarter. This is contrary to the high demands in Toronto. Being one of the country’s best real estate markets, it is not always possible to follow the national trends.

01/02/2018

Toronto is rich in affluent lifestyles, economic stability, and a diversity of unique culture. These features make Toronto one of the world’s best attractions. The vineyards, the great lakes, the parks, and the woodlands are the natural environment of this Ontario provincial capital. Rosedale and Yorkshire are two residential communities that have shown stability and sustainable growth due to Toronto’s size and scope. This growth has certainly spiced the real estate industry in not only the city, but the entire region as well. Toronto has witnessed a bubble in stone mansions and grand estates, Victorian heritage homes, innovative modern architecture, and high-rise condominium towers.

 

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It is expected that in 2018, most housing markets in Canada will enjoy a cooler first quarter. This is contrary to the high demands in Toronto. Being one of the country’s best real estate markets, it is not always possible to follow the national trends.

There’s high expectation that soon the Toronto market will slow down. This is according to some experts from the industrial sector. The slowdown will happen as the Toronto markets new rules on mortgages and hike in interest rates are affected. Condominium sales had already dropped by 21 per cent in the first half of January. Similarly, sales from the detached homes dropped by 20 per cent.

The Hiking of Condominium Prices

The best choice for those planning a budget for the first time has always been the Toronto’s condos. The low-rise market continues to price out many of them at the same time. However, this is expected to stop in 2018 as the prices and demand keeps rising. Visit https://mirvishandgehry.ca/ for more information on budget and high end condos.

More affordable homes found in the modern condominium-housing sector have been the best choice for the most end use buyers. However, this segment is pricing them out also. This is according to one Patricia Arsenault, an expert from Altus Group executive.

High Rise in Rents

Since April, the government of Ontario has put into effect control legislation on new rent to help in affordability crisis although according to experts, this is likely to worsen the situation.

Jason Mercer, a Toronto market analysis director in real estates comments that the control legislation on rent might reduce the rental supply. This also goes to the fair housing plan in Ontario. This is likely to affect both the condominium apartments and the purpose-built segments.

The already reduced supply levels can further be affected and the cash flow still is negative, according to Mercer. For the cash flow to still be positive, investors must charge a higher rent. Most owners could find it better to sell their units than renting them due to the recent gains in price.

End of the Single-Family Home

It is true that the rise in condominium sales leads to the fall of low-rise sales. 82.5 percent of sales of new homes in 2017 were made up of condos. 17.5 per cent only stood for single families’ homes.

The sales of new single families’ homes are moving to a decline in the New Year. On the other hand, the new condominium sales are expected to increase. This is according to one Matthew Boukall, an Altus Group director when interviewed by BuzzBuzz News. He observes that people are changing their style of buying as sales are steadily hiking.

Toronto’s real estate market will continue to face some ups and downs moving forward. Different analysts opine differently as to how the changes will affect the vast real estate market. It’s everyone’s hope that positive developments will be more than the negative ones.

 

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