Following a “volatile” year for the Toronto housing market, “moderate improvement” in terms of sales and average selling price is expected for 2019, according to the Toronto Real Estate Board’s (TREB) 2019 market outlook report.
In 2019, TREB anticipates condos will continue to drive price growth, while detached homes are expected to decline again.
“Although we won’t experience record levels, we do expect to see a better year in 2019 for sales and selling prices,” said TREB president Garry Bhaura in a release issued prior to the publication of the board’s 2019 market outlook report on Wednesday.
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- Renting is now cheaper than buying in Toronto: National Bank of Canada
According to the report, 83,000 sales are forecasted to be reported through TREB’s MLS System in 2019, which is a moderate increase compared to 77,375 sales in 2018.
This moderate increase will be supported by a small increase in the number of people considering a home purchase, as reported by Ipsos, which will be supported by “continued population growth, low unemployment rate and lower average fixed-rate borrowing costs compared to 2018.”
TREB also says “slightly tighter” market conditions, much like what was observed in the second half of 2018, will support a moderate pace of price growth in 2019.
Moreover, the average selling price in the Greater Toronto Area (GTA) will increase to $820,000 – close to the peak reached in 2017 and up from an average of $787,195 in 2018.
The condominium apartment market segment will continue to be the driver of price growth, whereas average detached home price growth will be below the average growth rate for the market as a whole.