Is Upward Trend in GTA Home Prices Possible in 2017 and Beyond? By Perrii
Ontario government recently announced its plan to calm the market. These measures are expected to cool the runaway real estate market, increase supply and help create more and fairer rental accommodations for residents.
The 16 measures outlined in the plan address the rising trend by attempting to regulate some of the rules governing agents, buyers, landlords and speculators.
“We are not interested in controlling the market,” Premier Wynne told the CBC. “That is not the aim. But we do believe that there is a need for interventions right now to calm what is going on, to put protections in place.”
Presumably, the Government’s aims could be
- To reduce speculative sales and demand
- Without affecting the overall real estate prices (and thus not attracting the anger of voting homeowners) and also
- To be seen as “doing something” about the market.
Before the announcement of 16 changes, the long-time housing watcher and chief economist of Central 1 credit union. Helmut Pastrick predicted:
- Toronto’s record house prices could soar a further 17 per cent by the end of 2017 as the lack of supply in the face of unrelenting demand continues to drive prices far beyond the rate of inflation.
According to Pastrick, “The principle drivers of home prices are market demand and supply fundamentals. Toronto’s population is growing, and supply is limited. Prices will keep rising until the next economic recession, whenever that is.”
Regional markets around the GTA – such as Kitchener-Waterloo, Barrie, Hamilton, and the Niagara Peninsula- could also see a surge in sales partly as a result of Toronto’s tight market. That could translate into house price gains in the 16 percent range over the next three years, says Pastrick.
With the announcement of 16 measures, we do not anticipate any U.S type market correction, but the market may slow down for some time before bouncing back again. How long is unpredictable. It could be one or two months or more.
So what is the actionable idea for people in the market?
First, there is no need to be panicked. Then, Decide to Buy or Sell according to your Needs. But remember, the market slowdown may not be permanent, and it can gain strength any moment.
Are you planning to buy or sell real estate in GTA? For advice and guidance, you may like to contact the author Perrii at 416-473-6100 or email: firstname.lastname@example.org.