Etobicoke Real Estate Market Predictions: 2018

If only we had a crystal ball and knew exactly what was around the corner. Well, we don’t have psychic power, which probably isn’t such a bad thing anyway. But we do have a ton of industry knowledge experience, and over the years have honed our ability to read the market. This enables us to make some pretty reliable forecasts in terms of the property market. In this post, we reveal six Etobicoke real estate market predictions to help you feel a little more prepared. Let’s go!

1. Condo Prices Will Stabilize or Decrease

We’ve recently seen condo prices skyrocket at an unsustainable rate. A pull-back of some sort is pretty much inevitable in the future. No one knows exactly when this will happen but there’s some certainty that it will occur.

2. The Number of Condos for Sale Will Increase

A recent report by CIBC World Markets and Urbanization Inc. found that investors accounted for 48% of all buyers who took possession of newly built condos in the GTA. At least 44% of those investors are currently in a negative cash flow position. This means that rents charged to tenants don’t cover their mortgage payments and condo maintenance fees.

As such, there could well be an influx of investors selling these units. As supply in the market increases, prices may stabilize or even come down.

3. Detached Home Prices Will Remain Almost the Same

We’ve seen detached home prices stabilize or slightly increase in desirable areas from where they were earlier in the year. This was expected after house prices went on a steep upwards run followed by a decline last year. We expect the prices to continue at a stable level or increase slightly at a more normal rate.

4. The Bidding War Revival Will Continue

After the crazy bidding wars in the detached home market came to a halt, there was a short break where multiple offers were rare instead of the norm. However, the hot condo market has now been seeing similar wars for a while. And they’re beginning to creep back into the housing market too.

We expect this trend to continue to be prepared to compete if you want to buy in one of the hot neighbourhoods.

5. The Volume of Homes Sold Will Remain Strong

We’ve seen good strength in the number of homes sold in Etobicoke over the last three months after a slow start to the year. We anticipate this to continue as buyers seem to be back out and sellers are willing to accept the pricing adjustment from the highs of 2017.

6. The Etobicoke Market Won’t Follow the GTA Market

There will always be more demand for the Toronto neighbourhoods like Etobicoke with close proximity to downtown.  The Etobicoke market has not seen the same degree of dips in prices and sales volume as some of the neighbourhoods outside of Toronto. We predict this will continue.

Of course, no one can say for certain what will happen in the coming months. As such, when it comes to buying and selling, trying to time the market is risky business. It’s more important that you make the decision that’s right for you at the time and we hope our real estate market predictions have helped.

If you want to know some more real estate market predictions, or if you’re thinking of buying or selling soon, your ThomsponSells team is here to help you every step of the way. Get in touch with us today!