The Toronto Real Estate Board reported a 16 per cent decline in sales through 2018, compared to the previous year. This and more information in the week's breakdown below, courtesy of our parent brokerage, Bosley Real Estate!
As we reflect on 2018, it was a year of ups and downs, depending on where you live. Home prices were up slightly in the City of Toronto and down in the surrounding GTA regions. There were 77,426 residential transactions reported through TREB’s MLS system in 2018. This result represented a 16.1% decline compared to 92,263 sales reported in 2017. Total new listings were down 12.7% over the same period compared to the last year. The overall average selling price for 2018 was $787,300 for all home types across the GTA. Those communities north of the city have taken the biggest hit in prices.
The mortgage stress test had the most impact affecting homebuyers in 2018. Under the new rules, most buyers were required to qualify for a mortgage at a higher rate than the contracted mortgage rate. This was put in place, so the borrower still had the ability to service the mortgage debt in case the interest rates suddenly increased. The semi-detached housing segment was the strongest performing, up 4% over last year. Condo prices also jumped 7.5% and continue to grow. Condos are relatively affordable, which have emerged as the first-home choice and they remain attractive to investors, who want to rent their units in the city’s tight 1% vacancy rate where bidding is common among would be tenants. Given the impact of the new mortgage stress tests and higher borrowing costs, it makes sense that condos and semis experienced greater prices based on their affordability.
As long as income, jobs and population growth continue to evolve, housing prices are expected to respond accordingly. In the absence of a major economic shock, housing markets are likely to maintain the status quo or could experience a slight growth in prices in 2019. Some predictions flying around are price increases between 3-5 percent and higher in sought-after neighbourhoods. We remain cautiously optimistic!
*Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Port Hope, Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE PAST WEEK:
Toronto’s luxury real estate market expected to weather ongoing economic turmoil
“Shaky stock markets, Brexit turmoil and trade disputes that rattled consumer confidence in Canada’s high-end real estate market last year will continue into 2019.”
Canadian Interest Rates: What Would It Take For Them To Drop In 2019?
“Like many other market observers, Central 1 expects the Bank of Canada will hike its influential key interest rate this year — but the credit union also presents a possible scenario that could see rates sink lower.”
'Renovictions' Set To Rise In Canada In 2019, Rentals.ca Report Predicts
“Amid predictions of rising rents in some of Canada's already-red-hot markets, a new report shows there could be bad things to come even for those who don't plan on moving.”
Toronto condo market expected to moderate in 2019
“In the real estate obsessed Toronto region, 2018 was the year of the condo — again. Condo prices have been rising for the past three years.?”
Technology to play bigger role in real estate transactions
“This year, real estate professionals will increasingly find themselves using online services and apps to facilitate transactions.”
Last month's two round ups:
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage - (416) 322-8000
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