Are you wondering whether 2020 will be a good year to buy or sell a home in the Toronto area? Some would-be buyers and sellers in the GTA are concerned about the current geopolitical climate. Will housing prices continue to rise? Or will trade wars, Brexit and other issues of the day lead us into a recession? Here are our predictions for the 2020 Toronto real estate market.
Home prices will continue to rise.
Even though policy changes such as the mortgage stress test and foreign buyers’ tax initially served to slow the housing market in Toronto over the last couple of years, it was inevitable that the real estate market would pick back up eventually.
The GTA has seen significant momentum in housing prices over the past few years, and we expect this to continue as we enter the new decade. In fact, it is likely that the median price of a two-storey home will exceed the one million mark within the next twelve months. That will be an increase of approximately 4.5%.
This will be the second time that the price of a detached home has risen that high – the first time being in the third quarter of 2017 when median prices passed the million-dollar mark.
The median price of a condominium is expected to increase at an even faster rate of about six percent and is expected to cross the $600,000 mark in the coming year.
The supply shortage will continue.
As you might expect to accompany rapidly rising home prices, there will be a continued lack of supply in the Toronto real estate market. While we do expect an increase of new builds, we do not believe that it will be enough to quell the demand. This shortage will only be exacerbated by continued population grow fueled by a combination of immigration and people moving into the GTA for employment opportunities.
A housing market recovery is on the horizon.
Areas of the GTA that were hit by the recent housing market correction, will see a recovery in the upcoming year. While some of the hardest hit areas such as Markham and Richmond Hill have already been showing improvement in 2019, we can expect to see areas closer to the core pick up momentum in the New Year.
So…. What does this mean for buyers and sellers?
2020 will most certainly be a sellers’ market, so if you have a property in the GTA that you are looking to sell, it will be a good year to do so.
Those looking to buy a property in the GTA in 2020 would do well to get into the market early. While you can expect a lot of competition from other buyers now, this will only intensify later in the year.
If you are looking to buy or sell real estate in Toronto in 2020, we would be happy to help. Contact us today to learn more.