Is 2017 a good year to buy property in Toronto

Is 2017 a good year to buy property in Toronto

Probably not.I hear the bidding wars are getting out of hand.A recent property, listed at $700,000, had over 800 visitors and multiple offers.

It sold for $1.1 million.Now, I’m not saying property in Toronto is suddenly not going to be desirable.The city is still growing at a breakneck pace and the demand for housing is only going to increase in both the short and the long term.

So far going by the current scenerio, it is still a good year for real estate in Toronto.The home prices in the GTA area have climbed more than 22% over the previous year, reference: Toronto house prices climb more than 22% | Toronto Star The average price for full-detached house in the 416 area was nearly $1.35 million, up 32.3 per cent from the same time last year while the comparable type of house in the 905 area had an average price of $957,517 — up 25.5 per cent.The biggest indicator of positive sign has been that there are lot of buyers but lack of new listings which is creating a scene of panic among buyers.

Toronto’s housing market is in for another red-hot year, the area’s real estate board said in a new forecast.The Toronto Real Estate Board predicted 110,000 resale homes would change hands in 2017 – the third consecutive year with sales greater than 100,000 – while average resale home prices would rise between 10 and 16 per cent to $825,000 in 2017.TREB’s forecast calls for the Greater Toronto Area market to experience only a minor cool-down compared with last year, when resale activity jumped 11.8 per cent to 113,133 transactions and the average price soared 17.3 per cent to $729,922.

Higher mortgage rates and stricter federal rules to qualify for insured mortgages are expected to curb sales slightly in the region, the board said.However, many buyers are preparing for the tougher mortgage rules by amassing hefty down payments, averaging 23.9 per cent for first-time buyers, according to a consumer survey conducted by Ipsos for the board.But TREB expects the biggest factor that could rein in the market in 2017 will be a severe lack of homes for sale in the region.

Active resale listings fell to their lowest level in 16 years in December, the board reported.The lack of inventory is expected to help push up prices of both single-family homes and condos once again this year even if it means the market is likely to see slightly fewer sales compared with 2016, the board said.

I keep getting this question in my feed and have not answered since I thought the answer was so obvious.And now that the Vancouver market is dropping this would seem to be the year the Toronto market finally crashes.