Of course, there’s no magical way to predict how the Toronto real estate market in 2017 will perform in the coming year, but if we take a close look at the Toronto real estate market last year, there are key indicators and past trends that can help predict how Toronto real estate in 2017 may unfold.
2016 Year-in- Review
According to the Toronto Real Estate Board’s (TREB) Market Year in Review Outlook Report 2017, last year was a year of record home sales that were driven by “population growth, low mortgage rates, low unemployment and above-inflation income growth.” A lot of buyers were shopping for homes but the demand for housing outstripped the inventory of houses on the market. As a result, housing prices increased.
High Demand + Low Inventory = Higher $$$
There was a lot of media buzz last year over foreign buying activity, but the statistics show that the record home sales we saw in 2016 were “heavily based on domestic demand.” In fact, foreign buying activity in the GTA only accounted for “a minimal 4.9 percent of transactions.”
The property types that saw the largest price growth last year include detached and semi-detached houses and townhouses. But with low inventory of these properties, competition in the Toronto condo market increased and resulted in a rise in condo prices as well. And according to an IPSOS Recent Home Buyer Profile, 51 percent of recent home purchases were made by first-time buyers.
Toronto Real Estate Market 2017 Outlook
For Prospective Buyers
Based on what we know from last year, it looks like the competition for available housing will outstrip the listings for sale in 2017. For hopeful home buyers, this means that there will be stiff competition for the listings available. Because of this, according to an IPSOS Profile of Likely Home Buyers conducted on behalf of TREB, 80 per cent of intending GTA home buyers plan to use a Realtor to help them navigate their home purchase.
For Prospective Sellers in the Toronto real estate market
TREB is forecasting the average selling price will see “an approximate calendar year growth rate ranging between 10 per cent and 16 per cent.” For prospective sellers, this may be a good year to consider future plans for downsizing or moving out of the city and take advantage of the valuable equity of your home. If you want to know the market value of your home, or need to learn about the options available to you, a Realtor is your best first step.
Let MMYT Be Your Guide
Mitra Moves You Team transforms dreams into sustainable wealth through strategic home ownership and real estate investments.
There are so many things to consider when purchasing or selling any property, that it can be overwhelming. Let the experts at the Mitra Moves You Team be your guide. We take pride in helping our clients find the ideal property based on their unique requirements. And we’re just a click or phone call away. Call 416-832-9292.
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