Toronto Homes & Real Estate - REMAX Hallmark Realty Ltd.

What are the current market conditions in the GTA?

05 July 2017
REMAX Hallmark

2017 has been a roller coaster year for real estate in the GTA. Buyers and sellers don’t know whether they’re going up or down, but they know it’s a wild ride. Analyst predictions include talk of bubbles bursting, soft landings, hot vs. cold, and just complete chaos, but how much of it is really true? What is the state of the current real estate market in the GTA right now?

A high start to the new year

At the start of 2017, we were looking at a complete seller’s market – one where those who wanted to sell could do so easily, where bidding wars were the norm and were prices were escalating to the point of unaffordability for many GTA residents. Inventory was lacking, but buyers weren’t, which was part of the fuel on this real estate fire.

Then things got chilly

In April, the Ontario government announced their Fair Housing Plan, implementing a number of changes that were designed to cool the market, but many didn’t believe the changes would have much of an impact on the market. But, just announcing that there were changes to take place set off a change in the mindset of home buyers and sellers in the GTA, who then became very cautious. Buyers decided to slow their searches, while sellers wanted to sell, now.

What happened in turn was that inventory went up, showings and sales went down and the bidding wars and exorbitant over asking price sales slowed considerably. This suggests a cooling of the market. But, it isn’t all bad news for sellers, as the forecast is predicting a 16% price increase in Ontario. What this basically means is that prices are still rising, while the frenzy is subsiding, so double-digit showings, bidding wars, homes selling within hours of being on the market and sold over asking is not going to be the norm for much longer in the GTA.

What does this mean for sellers?

If you are planning on selling your home, you still should go ahead with that plan. Inventory may have increased, but there is still a lack of it compared to years past. Don’t sell because you are worried your home won’t be worth what you bought it for, but instead because you need to make a change. With prices still increasing, your investment will inevitably go up.

What does this mean for buyers?

If you are considering buying a home, there is no better time than now. Waiting for some inevitable crash that may not come could be foolish and only ending up costing your more in the long run if prices continue to rise or even stabilize, as you pay more money in rent to pay someone else’s mortgage costs. There are a number of homes for sale with motivated sellers in the GTA.

If you need any help buying or selling your Toronto home this year, feel free to contact us.