Price Drop for your Toronto Home in 2017? What do you forecast? My crystal ball says “probably not, unless they do.” How’s that for hedging your bet??
You can pretty well pick your own “poison”, I mean, position on price drop forecasting.
You could take the position that the “trump bump” will affect bond yields positively, which means an increase in mortgage rates by Canadian banks, making it harder to borrow.
You could forecast that anyone who borrowed with a small downpayment will not qualify when it comes time to renewing their mortgage and defaults will be the result…oops! do I hear the sound of bursting bubbles? Of course housing bubbles have been the key message from economists since 2013 when the average sale price in the city was $523K. It is now $740K and still no “popping” sounds. But is 2017 finally THE YEAR FOR A PRICE DROP?
Or, how about affordability has been compromised and potential buyers will just sit it out with NO FEAR OF MISSING OUT….
But, did you know, that if you remove the stats of Vancouver and Toronto from the national stats that in fact, the average sale price of a house is $361K vs a mean income of $79K? That makes the price of a home 4.6 times income. The average ratio for the past four decades has been 3.5 times income, so this increase is not as onerous as one would think (which is why arrears/foreclosure numbers are still so low). AND these borrowers did not have the advantage of 2-3% borrowing rates!
Lastly, you could take the position that prices will continue to rise in 2017 for the same reason they have over the past 17 years. Supply and demand. You may remember that as the key component within all financial markets…..but whatever.
To clear your path for making a decent forecast here is the Toronto Real Estate Board’s very well crafted forecast…just hot off the press. After going through this analysis of the market by Real Estate experts I’d love to know YOUR forecast. After all, you’re the people who make it all happen….or not.
I’ve included this article as well where you will also see how HOT the suburbs are! It’s not just the city. In fact, places like Oshawa, Ajax, Whitby and Aurora are OFF THE CHARTS HOT! READ THIS: http://bit.ly/2i0kNDG
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect.
I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.