Condo market still hot as key factors continue to drive prices up – at a more moderate rate.
Reports indicate that while the GTA real estate market has cooled a little, the indicators are still projecting healthy 2017. With only 2 months’ housing supply, low-interest rates, and high demand, it’s still a good time to buy.
While skyrocketing prices have been the norm for the better part of a year, the hot Toronto market is starting to show signs that it may be starting to stabilise.
New resale listings in the GTA surged 48.9% in May on a year-over-year comparison according to the Toronto Real Estate Board (TREB) it does not cause concern. According to Toronto Real Estate Board President Larry Cerqua, the GTA’s supply of (resale) product as of the end of May is only about two months worth. This continuation of low inventory levels suggests that home prices in the GTA are not headed downwards, but will have a more subtle cooling. TD’s economic-research department now forecasts that GTA prices will rise 12% in 2017, just slightly down from its previous estimate of a 15% increase.
The fundamentals that have driven the Toronto condo market to its current heights, despite analysts suggestions, are still there. Low-interest rates, a lack of inventory, and high demand will continue to keep prices rising in the condo market, albeit at a more moderate rate.