Real estate market predictions for 2018
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How is the real estate market?
Well. It depends on who you ask.
Renters in Toronto worry that in 2017 rent went up over 12% while the vacancy rate is only 1%. Will rent control slow this down?
First-time buyers worry about the new mortgage rules which seem to target them more than any other group. However, anyone with a mortgage is uncertain what the new stress testing means to their borrowing power. The effect of interest rates moving up will certainly affect certain price ranges more than others. Each of these factors ripple-out and jiggle more than one segment of the real estate market. Thus there is some general uncertainty.
But there are also some knowns - the economy is strong (NAFTA negotiations notwithstanding), home values are up, even if they are down from the craziness of those 10 months in 2016 - 2017, and finally there are still buyers looking for a home. (Our River Oaks listing has had 44 showings in 8 days.)
The level of misinformation and / or conflicting information circulating is a concern as it does make both buyers and sellers apprehensive and slow to make a 'move' (pun intended). Consider the decision to hold off on listing a home...if everyone delays their listing, there could be a flood of new listings all at once later in the spring. Great for buyers, not great for sellers. This cautious market provides an opportunity for those who do get listed early - less competition! We will not be returning to last year's overheated first quarter but we are expecting the market to be more stable, more normal. Pricing strategically will be key. Homes may take a little longer to sell, and there will likely be more negotiating with any offers. Managing everyone's expectations in a market like this will require the experience of a strong realtor.
If you have any questions, don't hesitate to contact us.