2019 Spring Market Predictions
Monday Apr 29th, 2019
Everyone always wants to know what’s up and coming in the real estate market.
There’s no wondering why either.
For the people who want to get in the market, it’s a profitable time. Toronto’s housing market just can’t be beat.
Compared to Vancouver, it’s the hottest real estate market in all of Canada.
Which is why, if you’ve been thinking about getting in on the deals or like to keep a pulse on industry trends that could pay off from an investment perspective, you’re going to want to keep reading.
Prediction #1: Luxury condos and homes are going to become more in-demand
The GTAs luxury condo market is known for having the highest appreciation across Canada’s five largest cities over a 12-month period.
For the past two years, luxury condos in the Toronto market have modestly gained in appreciation — a trend expected to continue throughout the rest of this year.
In fact, when the report looked at all the cities across Canada, only the Greater Vancouver area showed a decline in luxury homes.
When we look at the year prior, luxury home sales are likely going to increase in the GTA. With any luxury property market, price reductions and increased selection are going to lead to more sales. At the moment, analysts are generally saying that the market is expected to “return to more normal activity in the GTA” but with an improvement from last year’s spring market.
Prediction #2: Interest Rates will likely remain the same
With a number of changes proposed by the Bank of Canada over the past few years, interest rates are likely to stay the same.
As with many policy changes, it can take time for conclusive results or progress to be made until the policies have had some time to be “active” in application.
While it’s still fair to say we don’t ever know for sure. It’s important to stay informed on both the national and worldwide global market news. That’s usually where we’ll first start to see signs of reactivity in the real estate market.
Considering the once-upon-a-time historical interest rates from the Baby Boomer generation, today’s interest rates are still incredibly low. As always, do your own research when considering shopping your mortgage rate. At the end of the day, you need to do what’s best for you and your family.
Prediction #3: Sales will increase pretty consistently
As most are aware, the spring market is one of the best times to be in real estate. For realtors, the spring real estate market is like the World Series playoffs.
Considering the fact that the government issued a number of policies that affect home buyers (including the mandated mortgage stress tests, have re-evaluated their positioning in the marketplace vis-à-vis home type, location and price point.) It makes sense that Ipsos, in its Home Buyers Survey conducted for TREB, found that home buyers want to get into the market as soon as possible.
With that said, that doesn’t mean that the housing market in Toronto isn’t balancing out or is not necessarily in strong favour of either buyers or sellers.
One thing’s for sure: it’s a great time for both parties to get into the real estate market.
If you’re looking to buy or sell your home this spring season, contact me to help.