Well, though I hate to admit it, I was wrong! I predicted 6,500 homes sold in November when in fact there were 7,374, making November 2017 one of the best Novembers in history. The reason for this is simple, the government announced changes to the mortgage qualifying rules commencing January 1, 2018, and a lot of buyers jumped into the market to make sure that they qualified under the old criteria. This resulted in stronger than usual sales and that trend will continue in December.
Some interesting facts; while the number of listings sits at approximately 18,200, a balanced market, (4 listing for every sale), and home prices are relatively stable, the condominium market is red hot! Prices on condominium apartments are up 22 % in 2017, with approximately 1/3 of all the sales on the Toronto real estate board being condominiums. This is a natural trend as many people can no longer qualify for single homes and have turned to condominiums. Condominiums have also become great investment opportunities, as rents have increased significantly and Toronto continues to grow.
If you’re thinking of buying or selling, as long as you do it in the same marketplace there is no downside. Warren Buffet proved the benefit of buying a good product and holding. I found that over the years my clients never made a mistake buying, the mistake was always selling.
If you know somebody considering buying, have them call me as soon as possible. With the changes in the mortgage qualifications, they should do it in 2017 vs 2018.
It’s been a wonderful warm fall, best wishes for the holiday season and throughout 2018.
Your Friend in Real Estate