Resale home sales momentum picks up in October. TREB’s latest news release on Nov 3rd, shows an unusually strong growth of 800 homes sold in October vs September. Click here to see the latest home prices.
While the talk has been about rocketing house prices in Toronto and a possible housing crash the Toronto condo market is blooming.
The upcoming mortgage changes in January means buyers are putting rush orders in now. Condos below $500k are selling well and will continue to do in 2018. The key for Realtors is helping buyers find an affordable condo, or a house with rental income potential.
Rental Income Investment Property
Some smart buyers are looking at financing solutions that give them a shot at rental income. Real estate investors in Toronto, Vancouver and elsewhere are focused on rental income investment properties. You should be too.
In October, home sales were down 2,000 transactions from October of 2016, while prices rose $18,000 YoY, giving us a little perspective on what is still a seller’s market here in metro Toronto. The number of listings dropped from 16,469 in September to 14,903. With the economy improving, we might already forecast higher prices in spring 2018, but nowhere near last spring’s madness.
What is the most notable change? It would have to be condos. Sales dropped by 24.9% yet condo prices rose by 21.8% across the GTA. Rental prices are skyrocketing as rental apartments dry up because of the rental price controls. How much further will Toronto condos climb in price?
“Every year we generally see a jump in sales between September and October. However, this year that increase was more pronounced than usual compared to the previous ten years.” — Tim Syrianos, President of TREB. And Jason Mercer, TREB’s Director of Market Analysis says the pschological impact of the foreign buyers tax and other government measures are beginning to wear off.
Home Prices up Year Over Year
The MLS® Home Price Index Composite benchmark price in October was up by 9.7% on a year-over-year basis in October, to $780,104 from $762,691 in October 2016.
Are you wondering if the Canadian economic forecast is strong enough to support a strong Toronto real estate market? It has its ups and downs, but the spectre of a housing crash seem low. Take a good look at the TREB market stats below. Prices are all over the place and many sellers are torn over what price to list their home or condo at.
October Sales Activity Report and Trends
Bookmark this page as it is updated very frequently.
Normally Toronto house prices slide back during the winter. That could help solve the afforable housing issue. Yet the market is 2 tiered – young buyers with limited financing and a rising group of detached houses that are well out of their reach. 2018 should be the year of the condo.
Considering buying or selling? Take a look at some of home buying tips and home pricing tips posts and this new post on the best renovations to grow the price of your house for sale. First Time buyersshould remember that house prices always climb even through recessions as you’ll see in the graphics and housing data below.
Some recent reports from Toronto realtors have it that buyers are back in the market this fall, yet there aren’t enough listings. They feel Toronto House prices will rise again. However, buyers are probably gleeful at the drop in house prices over the last 5 months. If it continues, they might be able to find a great buy. The Toronto economy could boom for sometime if NAFTA is unaffected, yet CMHC beleives there are dangers lurking for this market.
New sales data from TREB’s Marketwatch report paints a telling story of what happened in Toronto Real Estate in the summer of 2017 and how 2018/2019 might look. Buyers and sellers are wondering if the Toronto housing picture will mirror the Vancouver real estate forecast where Vancouver condos are king. Vancouver seems to have held its own which means the Toronto market might be safe too. Let’s not kid ourselves. A crash or a housing slide in Toronto is still a possibility (government).
Consider this your most up to date report on the Toronto Real Estate Market – lots of food for thought below. Enjoy the monthly price charts below which may help you decide whether it’s time to sell your house. Also see the Mississauga real estate forecast if you’re out in Mississauga, Milton, Oakville or Brampton.
Do you know anyone who may be buying or selling?
New Fed mortgage rules and a higher mortgage rate means buyers will need more money down and be forced to pay higher mortgage payments. The OECD and the World Bank are constantly nattering about Canada’s housing issues. What are they seeing that we don’t?
Most experts are calling for flat prices right through 2018, however there is still a lot of unsold new home inventory and governments are clear in their intent to suppress the housing market. Those considering putting up their houses for sale might be acting much sooner.
More Torontonians Putting Up their Houses for Sale
Before it was all about finding a house for sale, and now there’s lots of houses for sale. It’s almost certain you’re going to get a much lower price for your GTA house in the next 16 months. You’ll want to start reading my how to sell your home tips posts.
The Toronto situation seems to mirror the US housing forecast only with troublesome government meddling in TO. Experts suggest it is government action that causes the markets to suddenly slide out of control.
Toronto Housing Market Predictions from the Experts
Let’s start off with the Swiss Banks review.
Is BNN’s “end of the housing boom” story valid? Does real estate drive employment in Canada?
CMHC keeps the red flag hoisted on real estate
Trump and squashed Canadian exports represent a big worry.