Despite record property value increases in 2016, according to Re/Max’s housing outlook for 2017 Toronto area real estate prices are set to continue their steady rise. Investors can still hope to turn a profit in the hot market while buyers are going to feel the squeeze.
The Building and Land Development Association said this week that Toronto is facing the severest housing-drought of the last 16 years. There is a significant dearth in the supply of new build housing in the current market that looks likely to continue into 2017. The shortage of new build housing puts added pressure on the resale market, placing sellers in an enviable position while making it tougher for buyers looking for something they can afford.
Government policies aimed at suppressing demand have largely not worked as the result has been builders investing in fewer projects thereby placing greater demand on existing properties prices. Instead of trying to suppress demand it would be better if the government helped increase the supply of housing in order to stabilize property values.
Regardless of what side of the fence you are on, one thing is sure – Toronto’s hot property market is sizzling and there is money to be made if you play your cards right. However, if you are a buyer be prepared with a large down payment or be patient in order to get the house you want at the price you want. In fact, waiting until spring when the market picks up again it probably your best bet if you want a better deal than what you will find right now.
The Building and Land Development Association said this week that Toronto is facing the severest housing-drought of the last 16 years. There is a significant dearth in the supply of new build housing in the current market that looks likely to continue into 2017. The shortage of new build housing puts added pressure on the resale market, placing sellers in an enviable position while making it tougher for buyers looking for something they can afford.
Government policies aimed at suppressing demand have largely not worked as the result has been builders investing in fewer projects thereby placing greater demand on existing properties prices. Instead of trying to suppress demand it would be better if the government helped increase the supply of housing in order to stabilize property values.
Regardless of what side of the fence you are on, one thing is sure – Toronto’s hot property market is sizzling and there is money to be made if you play your cards right. However, if you are a buyer be prepared with a large down payment or be patient in order to get the house you want at the price you want. In fact, waiting until spring when the market picks up again it probably your best bet if you want a better deal than what you will find right now.
