The 2018 Housing Market Outlook Report
The RE/MAX 2018 Housing Market Outlook Report is out. Click here to download your free copy.
According to a survey conducted by Leger on behalf of RE/MAX, the appetite for home ownership remains strong with roughly half of Canadians (48 per cent) considering the purchase of a home in the next five years. Of those who are considering purchasing a home, the top three reasons for doing so are to upgrade their current home, to purchase a starter home as a means of entering the housing market and to upsize from their current home to accommodate a change in family make-up. The survey also found that access to outdoor spaces was a key factor for many Canadians when considering purchasing a home, with 87 per cent agreeing that access to green space was important to them and 82 per cent agreeing that having a backyard was important.
For the city of Toronto:
Typical first-time buyer demographic: young couples
Typical price range: $425,000 – $550,000
Typical condo buyer demographic: young couples
Average sale price for condos: $429,241 for 2016 and $523,437 for 2017
Average price change: increase of 22%
- The RE/MAX 2018 average residential sale price for the Greater Toronto Area is expected to remain stable.
- New OSFI mortgage underwriting rules that come into effect in 2018 are anticipated to reduce buyer purchasing power, and may result in more buyers purchasing condos, which are a relatively affordable option in the GTA.
- FIRST-TIME BUYERS & MOVE-UP BUYERS will drive demand in 2018.
Rapid price appreciation in the GTA defined the market during the first four months of the year before buyer concerns over affordability prompted the Ontario government to introduce their 16-point ‘Fair Housing Plan’ in April. Following the introduction of new regulations, including a 15 per cent tax on foreign buyers, market activity and price appreciation slowed significantly and the market shifted towards a more balanced market as many buyers took a wait-and-see approach to assess the long-term impact of the changes. Affordability is expected to continue to be the dominant concern for buyers in the GTA in 2018.