18 December 2013 ~ 0 Comments

GTA Housing Predictions for 2014

As 2013 comes to an end, preparations are already underway for what looks like to be shaping up as a busy 2014.

Attending information sessions put on recently by CMHC and RE/MAX Ontario Atlantic, as well as reading information provided by a few of the big banks and other industry related sources, here is what is predicted for next years real estate market.

  • It will be a good year overall for sales with activity nearing 90,000 on an annual basis. If this holds true, 2014 will go down as the second highest year transaction wise ever, slightly edging higher than 2011’s numbers, yet well behind 2007 sales.
  • Prices are expected to continue to rise, albeit at a slower % increase. Best guesses are somewhere between 2.5%-3.5% over the course of the year. If values for December hold up, 2013 will have increased 6% year over year from 2012 values.
  • Consumer confidence continues to be high. Unemployment numbers are expected to drop to slightly under 7%
  • High migration from other parts of Ontario, the rest of Canada as well as new immigrants, will continue to push demand for GTA housing.
  • The push to live in Urban neighbourhoods continues, especially in downtown Toronto.
  • Vacancy rates are extremely low and rental rates have risen in condos across the GTA. One bedroom rates have outpaced % wise that of Two bedroom units
  • Mortgage rates are expected to rise in the latter half of 2014, depending on how the United States continues to do. The U.S. showed strong growth in 2013 and is expected to continue through 2014
  • 2015 will see a large amount of condo completions come to the market, but keep in mind 95% of these units are sold by the time they are built and ready for occupancy. CMHC feels the condo market is balanced, considering housing needs of today’s consumer.
  • Condo costs are reasonable comparatively to the developed world. Owners and renters continue to be drawn to condos, especially in the Toronto core.
  • Canada has the second highest homeownership rates (second to only Italy) and slightly ahead of the United States.
  • Demand for housing is strong as single households increase (led by single females then followed by divorcing couples)

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