2018 brought new lending requirements which affected affordability for first-time home buyers. As an existing homeowner, if you don’t have anyone to buy your house, you can’t move up or move over. This contributed to a shortage in listings, which decreased sales 16.1% from 2017.
Interestingly, the average condo price is up 7.8% from 2017. However, housing affordability is unlikely to improve as home-ownership costs relative to median incomes will continue to rise.
Toronto immigration will continue to have an impact on the market as we are a big destination on a global scale – the average amount of people moving into the GTA is about 100,000 a year and keeps growing! Further, in the GTA, 700,000 millennials will be in the market for a home in the next decade, according to OREA. Therefore, RLP expects the GTA market to see modest gains, with home prices rising 1.3% in 2019.
With an overall slowing global economy and falling stock markets, the central banks are rethinking rate increases as RBC has dropped its fixed-term mortgage rate to 3.74. Canadians with variable-rate mortgages will also likely be spared being hit with higher monthly costs. By the end of 2019, RBC is projecting that “owning a home will take up 79 per cent of the median household income” in Toronto.
Click below to check out our local market reports for The Kingsway, Sunnylea and Thorncrest Village.