Experts say Toronto home prices will just keep going up
I had a dream once that Toronto house prices suddenly became affordable, but then a blast of arctic air shattered it and I awoke to a report from Royal LePage forecasting an almost 7 percent increase in prices next year.
The report estimates that Toronto's prices will reach an aggregate of $901,392 in 2018. That number peaked at $844,000 this year.
Toronto home sales are expected to soften during the first part of the year on account of stricter mortgage regulations set to begin on January 1 that'll make it harder for existing and prospective home owners to secure financing.
Royal LePage does, however, expect sales figure to eventually reach similar levels to 2017.
Despite the anticipated slow sales to start the year, prices will continue to rise on account of a continuing supply crunch in the Toronto area.
It's interesting note that while inventory rates often fluctuate month to month, the overarching tensions between supply and demand is a key factor in making Toronto one the least affordable real estate markets in the country.
Detached homes are still the most valuable real estate commodity, which isn't aided by a speculative market that might be even more influential than foreign ownership, which was targeted with new provincial rules earlier this year.
While the home price increase is merely an estimate, judging from the past few years it does seem that Toronto's housing market has simmered down since the days of 20 per cent jumps in home prices.
There might still be some hope after all.
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