Happy 2018 to all of you, near and far. Congratulations should go out to everyone for surviving what was one of the most tumultuous years in recent real estate history. We collectively got through mortgage rate increases, new foreign buyer tax levies, new rules for the building and managing of rental units and condominiums and the crazy roller coaster ride of price changes that seemed to spawn most of the new rules we just covered. Individually, each was predicted to stop or even reverse price gains that have been the norm in Toronto over the last few decades. Collectively, they were rumored to be the death knell of the real estate market as we know it. So, how did we do? Home prices ended the year up about 7% year over year, and condos finished the year up a staggering 17.9% when compared to the same quarter of 2016. By all accounts, it was the market that corrected itself, as data later showed that foreign buyers played virtually no part in price jumps, nor did other rule changes correct the volatility.
So what do we see coming down the road for the 2018 market? To be sure, we will see some mortgage rate increases as our economy continues to strengthen. We will also see average rents continue to climb, making home ownership as good a vehicle for building future wealth as ever.
In this edition of SmartMoves, we’ll look at the MLS Market numbers for the year just passed. We’ll also take a closer look into why rents continue to climb. We’ll also give you some humorous tips on surviving this winter.
