Here's Why Real Estate Prices will be Higher in 2018

  • Remax-Condos-Plus
  • 26 January 2018

It's pretty obvious that two groups of people are trying to forecast the 2018 real estate market in Toronto. The first group are those pouring over data, far removed from the actual market. The second group, are street people, like our agents!

Stress Tests

Economists tell us that stress tests and higher interest rates will slow this market down. In November and December, we had no stampede for buyers trying to beat the stress test. Conclusion, this will not be a key factor in 2018.

Rising Interest Rates

We're told that 35% of Canadians are one paycheck away from bankruptcy. Are these people renters or buyers? We don't know. Don't believe all the Stats Canada numbers. These are based on surveys and not actual counts. Who takes surveys anyway. Not me, and many people I know don't even tell the truth on these surveys. So, is there a bias on surveys that are not accounted for or explained? Absolutely.

Average Prices

Look at average prices, we're told they will fall. Yes, because the mix of sales will change from 2017. As we predicted, we'll see less sales of two million dollar homes in the 905. However, there will be a sweet spot in the 416 in the $500,000 to $1,000,000 market. Most of our market is based on demographics. I do know that most of our 150 agents have at least 5-10 buyers lined up, but only one listing to come down the pipe.

Get the picture? Higher prices in 2018