What does the 2019 real estate market hold for Toronto? We get this question quite often from our clients, be it investors, first-time buyers, upgraders or downsizers – everyone wants to know what’s going to happen next year. Now we don’t have a crystal ball, but we do have our ear to the ground and a solid financial background to be able to make a few predictions about the market in the coming year. And with 2019 knocking on our doors, we thought it would be a good time to review things.
Will the real estate market crash in 2019?
Let’s get this one out of the way first. Our answer – plain and simple, is NO – it’s highly doubtful that the Toronto real estate market will crash. Is there a chance? Yes. There is also a chance we’ll all be selling our homes to move to Mars, but the likelihood of both happening in 2019 is slim. Very slim. People have been talking about a “crash” for years, and although we’ve seen some right-sizing of the market, we believe this is a good thing. Steady is good – good for sellers, investors and buyers in the city.
We all win. An inconsistent and unreliable market puts everyone on edge and only benefits a small few – if you get in on it, great. But if you miss out, you’ll be full of “what-ifs” for years.
We see a steady market continue in 2019 for Toronto. We will continue to see more listings come to the market as seniors continue to downsize, and those who have been in a condo for more than a few years will take advantage of the rising prices and decide now is the time to move into a house. That’s likely to be the group to take the most advantage of their buying power – sell your condo at a great profit and enter the homebuyer market where you’ll have an advantage due to the influx of listings.
Are housing prices going to fall in 2019?
We predict 2019 to be the year of the buyer. But the smart buyer should be thinking about buying soon, as interest rates are expected to rise once again. Get your mortgage pre-approval, and start looking. Don’t wait until the spring real estate market. Start in January or February. Or start now and get ahead of the game.
With the influx of listings that we predict will continue, prices will steady out. We won’t see too many “200k over asking” headlines. Agents are working to price houses right, so their clients are happy. No one is really rolling the dice any longer by under-pricing their home and crossing their fingers.
In fact, homes that are grossly over-priced are now looking at price reductions – we’ve been watching a handful of homes recently and this seems to be the trend. We expect that to continue in 2019. So, price your home right and it will move quickly – people are looking and watching. Trust us.
What are the up-and-coming neighbourhoods in Toronto for 2019?
Our weekly neighbourhood watch indicates there are a handful of areas in Toronto that buyers should be looking at. Dufferin Grove is one of them – not just for the media buzz it has been getting in the media, but because of the great listings we’re seeing there. Homes are achievable for under the 1 million mark which is pretty rare in Toronto at this time.
Riverside is another area of Toronto that buyers should be looking at. There are lots of options for home buyers – there are fantastic starter-homes, you can find totally renovated homes and for those looking for a project, they exist there too. Proximity to the city and a fantastic school district are all also big perks and benefits of living in Riverside.
What Will the Condo Market Hold in 2019?
As for the condo market – it’s getting interesting. Pre-construction investments need to be scrutinized in detail more than ever in 2019. Don’t get caught up in the hype – that’s our advice. Pay attention to price per square foot that pre-construction are selling at, and compare that to the current price per square foot currently in the area. We’re seeing some pre-construction selling as high as $1750/sqft which is over $700,000 for a 400-square-foot condo.
There are also incredible investments out there that should not be missed in any investor’s portfolio. Two-bedroom, two-bath condos for $900/sqft sounds a lot better in our minds and in our wallets. Especially when you think about the rental potential for a family with a baby or young couple moving into the city. Pre-construction still works – you just need to be mindful and smart with your investment dollars.
We expect 2019 to be an exciting year for real estate in Toronto. With a stable market, everyone wins, so if buying, selling or investing is in your near future, don’t wait! You can get started today.