Best to Read Past the Headlines.
My Perspective on PricesThere seems to be much guessing out there so I’d like to share my brief insight into the market update and current real estate trends as we approach the Fall market.
While we can’t totally discount the market loss of activity due to seasonal factors and Buyer’s exhaustion after an intense 18 months, the numbers don’t ever lie.
We know the media uses strong adjectives to describe stories but it is important to focus on what the actual numbers say. You can read about the detailed changes In the Globe and Mail Article (you can read the article by clicking here ), but the most important takeaway is this buried statement:
“TREB’s benchmark house price index, which corrects for the changing composition of homes sold in the period, showed a 14.3-per-cent increase in prices in August.”
Market forces are certain to impact the market just as interest rates are inching up, but demand is still a huge driver. As we know, Immigration is a substantial catalyst as it fuels demand.
Based on Canada accepting 250,000 newcomers each year, the Greater GTA portion is about 55%. On average this means 370 people arriving in the GGTA each day looking for accommodation. Certainly not all are Buyers, but it also fuels demand for investment properties.
What can we expect?
The outcome is rather obvious, if nothing changes. Unless there is a flood of new development on the mid-term horizon, prices are likely to remain fairly strong despite what the headlines say. Keep in mind, the historical average of price appreciation is about 4.5%, so there is still lots of room for wobble before worrying about the sky falling.
If you have any questions or market specific inquiries, don’t hesitate to call or send me a message.