2019 GTA Housing Overview
Toronto Housing Market 2019 – GTA
Last year we saw a slow down In the GTA housing market thanks to a number of factors including the financial stress test introduced by the federal government last January as well as a non-resident tax which made Toronto homes less affordable for many foreign buyers.
But while prices dropped for some types of homes like single family detached homes, other types of homes such as condos and apartments went up in price as more buyers flooded those markets.
So, what’s in store for housing in the GTA in 2019?
Here are some of our predictions.
Expect the tech market to move prices upward.
The tech industry is booming in the GTA. According to CBRE, the number of Tech jobs in Toronto rose by more than 82,000 jobs last year – more than Silicon Valley! With companies such as Microsoft and Intel moving into the area, you can expect more professionals to move in with them as they seek out these high paying jobs. With all the wealth moving into the area, you can expect home prices to continue their climb upward.
Affordability will be affected by higher mortgage rates.
2018 saw several interest rate hikes by the Bank of Canada. So even though the price of single-family homes in Toronto has gone down, they remain unaffordable for many Canadians due to the fact that mortgages are now more expensive.
Supply will be affected by fewer housing starts.
Last year we saw a considerable drop in construction of new homes not just in the GTA but across the province. According to a report by TD Bank, urban construction was scaled back somewhere between 35,000 and 65,000 units.
No housing crash in the 2019 outlook.
Doomsday prophets have long been predicting a crash in the GTA housing market. According to CMHC however, the market is strong, and a crash seems unlikely. In fact, the outlook for 2019 is that there will be very little fluctuation at all.
What does this all mean?
Well, if you are looking to purchase a home, things could be a little tricky due to the immense competition from other buyers that you are likely to face.
Having a custom-built home may make more sense in 2019 than ever allowing you to get exactly the type of home you want without having to worry about being outbid.