It’s easy to strike up a conversation about real estate in Toronto, especially since everyone has something to say about it. Despite the well-intentioned advice that the regular joe will give you, it’s a very uncertain business, especially now more than ever.
The market can heat up and cool down in a moment’s notice and it’s often difficult to predict the trends of the business. Though uncertain, here are a few researched predictions that may take place at the tail-end of 2017:
1. 2017 will not likely be a record-breaking year
Despite the home purchase forecast from TREB (Toronto Real Estate Board), 2017 will not likely be a record breaking year since home purchasing cooled down in May. The quality of homes that homeowner hopefuls are bidding on are significantly lower than they have ever been, largely because they are aiming to make bids that work with their budget.
With income rates steady and the price of housing soaring, it is discouraging home buyers from seeking out homes in the market because they have to go into debt to find a home.
2. Home ownership will stay down because of external factors
People will still find it difficult to own a house because of higher rates of unemployment (the unemployment rate being 6.5%), the lack of affordability amongst listed houses, and bidding wars that escalate prices so much higher.
Generally, the rate of inflation has been increasing at a higher rate than the average income. This likely has an impact on the consumer’s ability to afford a house.
3. First-time homeowners will dominate the market
Since previous home owners, especially in downtown Toronto, will have trouble making the same amount of profit off of their house as they would have at the beginning of the year, they are less likely to purchase a new house.
The transition between selling their old home and owning a new home could have them paying for two rents, which is not a financially feasible plan for most people. This is why first-time home owners will likely dominate the market, after amassing enough funds to make a down payment.
4. Toronto will still be a hotbed for real estate
To most, Toronto seems to have it all: job opportunities, transportation, and a ripe sense of culture. There will likely be a high demand for housing from college and university students, start-up businesses, and foreign investors especially.
This is why Toronto will continue to be a hotbed for real estate for both regular homeowners and commercial real estate. With constant construction developments, there should also be a large supply of inventory for those who can afford it.
5. There is no “best time to buy” real estate in Toronto
Despite what people try to tell you, there isn’t a distinct “best time” to purchase real estate in Toronto. It’s true that the Summer presents a slow market and this Fall will likely have a larger inventory, the market can rise and dip at virtually any time. Also, having a larger inventory can create a more competitive market, driving prices right up.
Spring also has the largest inventory due to families selling their homes. Transactions happen over the Summer and close by the Fall so that families have everything settled by the time the school year starts.
As inventory goes, any time aside from the Summer is a good time. As far as price goes, there really is no best time of year, just keep an eye on the market and plan according to your budget.