Many pundits and experts have been anticipating that the GTA housing market would experience a course correction at some point in 2018. Now that we’re in the last quarter of the year, it looks as if prices are trending up and that a full-blown course correction is probably not in the offering.
Let’s review what buyers and sellers should expect in the next two quarters. Keep in mind, markets are volatile and it only takes one regulation or development for things to change.
State of GTA Housing Market
Housing prices experienced a dip earlier in the year but prices are set to increase along with interest rates. This increase shouldn’t be back breaking but it will cause the market to cool as more people wait for prices to come down before buying or selling.
This small hike didn’t take anyone by surprised. It was caused by the current provincial economy, the lack of affordable housing and the overall tug of war that is occurring between supply and demand.
Earlier in the year, the average home price was down 13% in Ontario. This number should grow but to call it a course correction would be an exaggeration.
What’s in Store for Buyers?
Buyers should expect to pay a bit more than they would have last year. They will still need to pass the mortgage stress test and the supply of properties should be in line with the numbers reported in the GTA in 2017 and early 2018.
The province isn’t approaching any sort of bubble but there might be some vulnerability as inventory expands along with prices.
What’s in Store for Sellers?
Well, sellers could see a nice return on their properties but it’s only if they can sell. Properties might have less prospective interest and fewer bidding wars as people wait for prices to drop.
No reason to panic though as it only takes one motivated buyers or a strong real estate agent to make a sale happen.
Course correction or not, the GTA market always bears monitoring. Prices are up now but there’s a good chance that it will shift causing the market to head in another direction.