Our real estate predictions for 2017

Last year was rocky for Southern Ontario’s real estate market. There were a lot of legislative changes, supply in both the resale and new home market dwindled, and we continued to see record high sales in the Greater Toronto Area (GTA). So, what does 2017 hold for our real estate market? For all of January, we’ll be sharing a few of our real estate predictions based on last year’s trends and hopefully we’ll get in some interviews with a few well known pundits.

What did we see last year? Mortgage rules became a bit more strict in an effort to slow down the market. Will it work? 2017 will tell us. First-time buyers took a few hits, so 2017 might be a good year for landlords. There were some positives for first-timers, but not enough to make the GTA a realistic place to own.

There were some major changes elsewhere in Canada, like in British Columbia where a new foreign buyer tax was implemented. We still need to see how this affects Ontario’s market. Will more foreign buyers turn to Ontario for investment? Will Ontario need a tax like this? Foreign investment has been blamed for rising prices, but it seems like there isn’t enough data to prove it.

We also observed a significant shift in the new condo market. The sale of two-bedroom units increased in Toronto CMA. Does this mean more couples are investing in the new condo market with the hopes of raising a family? Developers like Daniels are even introducing family-friendly amenities in their developments, like craft rooms and play zones. Will downtown Toronto turn into family central? Can the infrastructure and school system handle it?

Honestly, we feel like the number of changes that took place in 2016 will in fact slow down the market, but it’s probably for the best. It seems like the GTA is ready for a more relaxed year. Throughout January, we’ll be sharing our ideas and the ideas of others. And we’ll be keeping a close eye on the GTA’s real estate market throughout 2017.