According to the Toronto Real Estate Board (TREB), October sales decreased 26% from October 2016 but were 12% higher than September 2017. Is the market beginning to show signs of a rebound? So far in 2017, sales are approximately 80,000 and some are forecasting that the year will end at approximately 91,000 sales, which is approximately 19% lower than in 2016, which ended at approximately 113,000 sales. If we continue with a more normal or balanced market, then 2018’s sales numbers could land somewhere in middle, perhaps 100,000 sales might be realistic. Those of you that know me are likely wondering what’s happened to me, since I usually profess not to make predictions, and that you shouldn’t listen to anyone who does. So allow me to clarify that these are observations of historical figures and what they might suggest of the future, rather than predictions. Splitting hairs, you say? Maybe.
So, what’s really on buyers and home owners minds these days is likely the recently announced changes by OSFI (Office of the Superintendent of Financial Institutions). Beginning January 1st, 2018, they are stipulating that buyers in need of a mortgage must qualify at a higher standard than currently, affecting even buyers that are borrowing at a lower ratio of their purchase. Making it more difficult to borrow and limiting further the amounts lenders will mortgage will of course, remove a number of buyers from the market. If this causes a slow down and/or average price drop, this could present an excellent opportunity for those buyers that remain in the market. Will this then also cause further challenge to selling a property? Not if you’re priced right and present your home well. Ultimately, what will continue to dictate the type of market we experience moving forward, as always, are supply & demand.
As always, if you’d like to discuss this or have any questions, I’m always happy to take your call. Feel free at 416-406-4440.