Sellers and Buyers are going to be spooked by forecast of a flat in 2018 housing market in Toronto, says Cam Forbes, a broker and general manager with Re/Max Realty Group.
Re/Max is expecting 0% price increase by next year over 2017 and 17.5% over average price decline in first 4 months of year 2018. You can go through a book i.e “The Book on Toronto Real Estate” which is very helpful to know about investment in Toronto.
Cam said that January and February are slow but it is slower than the normal. Then Housing Market in Toronto is reassessing and coming back to the life very strongly in May. He also said that a spring market and cautions buyers in the very first 4 months.
Re/Max Housing market Outlook published that it is much more conservative than Royal LePage, which was predicted on Wednesday with 6.8% rise in home price in Toronto in next year.
Difference comes down to the math. To recover from 17.5% drop in first 4 months this would need increase in double digit for balance of year which is not realistic. Toronto Condo Report is also available on Toronto Real Estate Bulletin.
According to Re/Max, average home price in Canada will rise by 2.5% by next year.
New mortgage test rules will take effect on 1st Jan which need buyers to qualify at high rate of interest and this will hamper that affordability in early part of the year.
Housing Market in Toronto is recovering from Ontario Fair Housing Policy that launched in April which includes foreign buyer’s tax and some other cooling measures.
There are some combination of factors which make sure that buyers are much more cautions before jumping in market in first 4 months.
Frenzied price growth of this year is more than 20% in first 4 months which was not sustainable. He also said that there are 2 housing markets in Toronto area i.e the 905 and 416.
The 416 is too hot because you have number of buyers who try to get in before changes in Housing Market in Toronto. But this is not the case that you get out of core in 905 where homes are taking around 3 months to sell.