Cold weather tends to slow things down, and we certainly have that in spades as of January 2018. 

The Mellenials are getting more and more press, with the main group of them, known as "Peak Milennials”, now making up a big part of the first time homebuyer market.  In the Toronto market, Peak Millenials are often targeting condo’s, due to their affordability, compared with detached homes.  Baby boomers are also more and more heading for condos as a means of downsizing the complexity and maintenance of their homes, and freeing up money for lifestyle changes (mainly travel). As a result, in the GTA especially, we’re becoming a “Condo Nation”. 

 

Of course rising interest rates (another rate hike was announced today) and the forecast for addition increase in 2018 and 2019, will make it interesting.  

The level of available homes for sale, known as “Inventory” is low but will improve as we move into spring which will make buying a bit easier. 

Another factor affecting the Burlington/Oakville market is migration from other Canadian provinces.  The GTA is where the jobs are so we’re expecting that trend to continue to put upward pressure on our home prices. 

 

Lots to take in, but when you look at the marco economics, homes in the GTA are still considered by buyers across the globe to be very affordable, believe it or not, and that view, coupled with security, multiculturalism and economic prosperity will make this area a great investment for real estate for the foreseeable future. 

 

See what Royal Lepage CEO Phil Soper and others are saying: 

http://www.cbc.ca/news/canada/toronto/real-estate-trends-2018-1.4488392

 

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December Homes Sales Surged In Advance of New Mortgage Rules

This is the result we saw in December, as some sellers rushed to get ahead of the feared drop in prices.  We haven’t seen dropping prices, even into January, as inventory (the number of hones on the market) continues to be very low, which causes buyers to have little in the way of home selection options. Inventory is typically low at this time of year, as owner prefer to wait till their yards are viewable in the spring.  In addition, buyers tend to lay low in December and January, and then start to come out of hibernation toward the end of February.  Stay tuned - we should see more inventory then.   

Rad the full report HERE

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While some purchasers jumped into the Oakville housing markets to find a property before the new OSFI stress test took effect, the majority of prospective homeowners elected to wait on the sidelines in order to gauge the impact of the new policies. This however did not translate into a large reduction in pricing, as inventory remained low across the regions. Existing residents are now also holding off on listing their homes, believing that pricing may be rekindled once new market conditions are absorbed. During the quarter the aggregate price of a home in Oakville increased by  14.2 per cent year-over-year to $1,105,412. 

“Aggregate" means a mixture of all home types (detached, townhomes, condo’s).  Big influences on price are the high demand and the low inventory (available homes on the market), and the new mortgage rules.  In addition, Millennials are increasing adding to the demand for homes.  

Full report here: http://markets.businessinsider.com/news/stocks/The-Greater-Toronto-Area-s-Housing-Market-Sees-Double-digit-Year-over-year-Price-Gains-in-the-Fourth-Quarter-of-2017-Despite-Softness-in-Quarterly-Trends-1012803221

Implications for buyers:  

As demand intensifies, compromise becomes more important.  Reconsider locations and style of dwelling to fit your budget and lifestyle goals, so that you get into the market and benefit from the next few years of price growth. Its a relatively balanced market, so there will be an advantage to acting quickly and that means get yourself well educated on your financing position and on the market, so you can make a quick decision when a good property becomes available.

Implications for sellers:  

There are lots of buyers out there but in this balanced market, they’ll have some level of choice, relative to the Spring of 2017.  Prices peaked in the buying frenzy as of April 2017.  Year over year, prices are well up so its been a great 12 months for capital appreciation.  The market will value your home based on comparable sales.  Properly priced homes are selling. Ensure that if you accept a conditional offer, try to ensure the buyers are well qualified (recently) relative to their financing plans. 

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