2018 REAL ESTATE MARKET

Is Poised To Be The Year Of  The Condo

With the release of the annual stats for the Greater Toronto Area, a reported 92,394 transactions transpired equating to an 18.3% decrease from 2016.

At the start of 2017 in Q1 we saw record prices but as supply met demand, a decline occurred in Q2, and when the Ontario Fair Housing Plan (FHP) was announced in Q3 combined with a cyclical Summer slowdown we saw a further decline in prices. As Q4, the Fall Market kicked into gear, the FHP started to wane & looming deadline of OSFI stress test guidelines effective 01/01/2018 were implemented brought forward Buyers wanting & needing to get into a house purchase. In short, much of 2017’s volatility was due to government policy decisions.

The detached market performed at the slowest growth vs. the condo market which experienced double digit growth. Condos accounted for an exponential growth & share for transactions in 2017. I believe as a result of Buyers looking at less expensive options to enter the real estate market.

The demand for GTA real estate continues to be strong for many reasons:

 robust economy
 lowest unemployment rate in a decade
 population has increased 2.0% from 2015 surpassing the area’s long term average, and
 federal government has increased immigration targets = new GTA residents all needing housing.

The entry point for most Buyers and with our aging population, the Condo proves to be on purchasers’ wish list as it offers affordability, low maintenance and a lifestyle choice.

Whatever your reason for getting into the market? There is no better time for ownership as housing has always been, and continues to be a great investment.

GTA Residential Average Price* 1996-2017

1996 — $198,150
1997 — $211,307
1998 — $216,815
1999 — $228,372
2000 — $243,255
2001 — $251,508
2002 — $275,231
2003 — $293,067
2004 — $315,231
2005 — $335,907
2006 — $351,941
2007 — $376,236
2008 — $379,347
2009 — $395,460
2010 — $431,276
2011 — $465,014
2012 — $497,130
2013 — $522,958
2014 — $566,624
2015 — $622,217
2016 — $729,837
2017 — $822,681

*MLS, Source: Toronto Real Estate Board, RE/MAX Hallmark Ltd.