Wednesday, October 02, 2019 / by Gianfranco
Everyone seems to know where the Toronto Real Estate Market is going so here is our prediction for the rest of 2019. What are your predictions?
What's going to happen for the rest of 2019? We’ll talk about the four predictions for the rest of 2019.
That's the biggest question, right? Everybody's always wondering, what's going happen? We may be right, we may be wrong and a lot of people who do make these predictions are usually wrong and they never comment to say, yeah we were wrong, but they always comment to take credit when they're right.
We'll make sure to do that as well, whether we're right or wrong. One of the things when the market had the dip, what happened was condo sales went crazy. They started going up. They went way high and everybody who was trying to buy, well, who was initially trying to buy freeholds couldn't.
The single-family homes were going down. Single families were going homes and condo prices started going up because people started seeing condos as a more affordable option, but then they started to go up in price so much. And as the detached houses or freeholds were going down people realized well there's no point. They were like “I'll just go and buy a freehold as I was going to do anyway.”
So, some of them caught up to it. They got caught up in the limbo and for that reason as hot condos sales were in 2000 is expected to kind of mellow down, level out, for the rest of 2019. That said, condos will still play a major role in Toronto's real estate market this year and plenty of new condo developments are near completion and many more projects are on their way.
So, that's for the condo sales and then for home sales we're going to see a slower climb, especially with the mortgage rules and stress and all these things is happening, interest rates, election. There's a little bit of uncertainty. We will see a slower climb and a more stable market for the home sale prices which is a good thing. We'll have the slower 5% growth. We think 2% to 5% would be a healthy increase over your average prices.
Usually right before an election people tend to kind of take a back seat. They want to see what's going to happen, what the politicians are going to do, what new rules they're going to introduce.
Then for the luxury market, like homes, luxury market is much lower price but in our city luxury price is pretty much 1 million/1.5 million plus and for those ones it's going to probably soften a little bit. They'll probably still sell at the right price, but they're not going to continue going up. They'll soften a little bit.
They may not sell as quickly as maybe a 600, 700, $800,000 home. They will sell eventually but it's going to take a lot more work. It's going to take a lot more marketing. Don't expect any, you know if you have a luxury home, that the price is going to go up much higher. It may go up at a very slow pace or very stable pace, flat. Hopefully it doesn't go down, but we're not expecting it to go up.
And then for the rent prices, obviously, we're expecting the rent prices to increase for sure, definitely, due to affordability reasons and a lot of people are not, just the uncertainty. A lot of people may rent and just to see what's going to happen. But if you're a renter and you're feeling like maybe you're spending too much money on rent, maybe you want to consider different options and start talking to different people what your purchasing options are going to be.
If you're thinking about making a move in the next three to six months and you would like somebody from our team to help you with the purchase or sale of your home, you can just call 647-977-9752 or you can go to our website at www.torontoplatinumteam.com and somebody from our team will reach out to discuss your plans and what the next steps will be.