Despite an interest rate hike, homes sales in the GTA have improved since last year by 6 per cent. TREB indicates a strong and growing demand for condos and low-rise units.
The emerging seller’s market for homes was strongest in the city of Toronto, driven by a 10.9 per cent increase in the home price index for condos, which compares an equivalent unit from year to year.
The average sale price of a home for October 2018 in the GTA was up 3.5 per cent on a year-over-year basis to $807,340.
The average sale price for a condo was $603,153 in Toronto, compared to $461,013 in the 905. That’s a 4.1 per cent change year over year in the average price.
The reason prices are up could also have to do with the fact that listings are down while sales are gradually inching upward.
Despite all what is going on in the world of real estate, people in the GTA are still bullish on home ownership as a long-term investment.
A strong economy coupled with population growth will ensure buoyant market for homes.
However, overall across Canada, the real estate market will go through a sluggish period. The Canada Mortgage and Housing Corp. says it is normal and expected as the growth in housing prices is expected to slow to more in line with economic fundamentals.
In its 2018 housing market outlook released this week, the national housing agency projects housing starts and sales are both expected to decline in 2019 and 2020.
It predicts housing starts for single and multi-unit starts will fall to between 193,700 and 204,500 in 2019, while sales are anticipated to be between 478,400 and 497,400 units. Prices are anticipated to range between $501,400 and $521,600.
CMHC says it expects economic indicators like income and employment to continue to help support demand for housing starts, but these fundamentals are anticipated to slow down to a more sustainable pace.
Rising mortgage rates are also expected to affect housing demand and the resale market.
By 2020, CMHC demand will keep moving toward more affordable housing options like apartment condominiums rather than large single-detached homes. -CINEWS