It’s that time of year when we look deep into our crystal ball and create real estate predictions for 2020! We expect good things for sellers, in other words, values will increase across the Greater Toronto Area, we expect that downtown core of Toronto to be leading the way with higher increases and competition compare to Toronto’s suburbs.
The Toronto real estate market had a great Fall, which capped off a good year. We saw signs that more and more are gaining confidence in values and thankful for the mortgage approval changes in their favour. This will spill into 2020. If you are not aware, late January is when our “Spring” market kicks in. Yes, this sounds ridiculous as it’s only a month into Winter. Long gone are the days when the Spring market began in April. What buyers and sellers need to know is that late January will start with a bang, we will see prices spike (as they do every year) then settle until the season of Spring begins. The pent up demand through the holidays, fewer listings through the shorter market in the Fall means that the buyers are raring to go.
As for value increases, the Canadian Real Estate Association (CREA) expects to see the national home sales to go up 6.2% in 2020. Now you may be asking what this means for Toronto, right? Here’s the thing: Toronto and Vancouver will be pulling up the nation’s values. We expect to see an 8-10% increase across the downtown core. With the mortgage approval changes favouring first time buyers, expect to see a spike in Condo values in the short term. As 2020 progresses, we will see that spike in value pushes into homes, first townhouses, then semi-detached homes followed by detached homes. It’s a knock-on effect that will drive the market upwards.
Is any of this guaranteed?
Nope. There are so many factors that go into real estate predictions. What we can assure you is that we have our finger on the pulse in a very active marketplace. You can be assured that we update and revise our views as and when the marketplace and the outside factors change. Nothing is stagnant, so we aren’t either. Statistics and active experience doing deals for clients ensure we give our clients what they need to know to make a great decision!
Can the past be of indication of the future?
Somewhat. But, we need to be wise and selective. We know that many people want to move to Toronto for work; it’s the number one employer in Canada. We know that there is not enough housing for the demand (thus, condos are being built throughout the downtown core). These are the more macro views that we have seen over the last number of years. Of more recent months, we know that the Fall real estate market was robust. This confidence will spill into 2020.