Today we are excited to discuss some Real Estate Prediction and whether you should buy or sell in 2018. If you are wondering what is going to happen in the Real Estate Market for the remainder of 2017 and 2018; you need to read this article. Christopher Alexander; Regional Director RE/MAX Integra answered some challenging questions about the Real Estate Market.
6 Questions thatChristopher Alexander; Regional Director RE/MAX Integra will answer:
1. JG – The winter & spring real estate market was a super sellers market. In The summer the market corrected and it feels like a buyer market even though it is still considered to be in a seller market. What are your thoughts on where the real estate market will go in 2018.
CA – The market fundamentals of the GTA and Greater Golden Horseshoe(GGH) are very strong. We have historically low unemployment, our GDP in the GTA is the highest it’s ever been, we continue to have historically low interest rates even with the recent rate hikes. The GGH continues to attract almost 100,000 immigrants per year. Most of these immigrants are highly educated and have jobs lined up when they arrived which means they have buying power. The dream of homeownership is also alive and well amongst Canadians. All of these factors will contribute to a healthy 2018
2. JG – From your insight on the Real Estate market What areas should have the highest growth potential in the next 3 years (2018 – 20). What makes you feel these areas will grow the largest.
CA – It is always hard to predict the future especially more than 12 months out. However, according to recent government projections the GTA alone is expected to grow by almost 3 million people by the year 2040. This will create a challenge for builders as they try to keep up with that kind of demand ensuring consistent long-term price appreciation. Will there be ups and downs? Sure, but real estate in Canada, and especially the GTA will be a good investment for the long haul.
3. JG – Would you recommend a condo or a home as an investment property and why?
CA – I would recommend any property that meets your needs. Whether you are an investor or looking for a family home it is important to choose a property that meets your needs and you can stay in for more than 3 years. You give yourself the greatest chance of return on investment the longer you own any property.
4. JG – 50% of consumers think the market will rebound like Vancouver after the gov’t put in regulations around foreign tax. The other 50% feel we are about to have a US style meltdown. What is your analysis on the market and what is more likely to happen and why.
CA – The US meltdown in 2008 was a completely different situation than Toronto is in today. From the early 2000’s until the crash of ’08 anybody with a pulse could qualify for a mortgage, car loan, boat loan, etc etc and they were. Prices also appreciated at a rate unfathomable to most in such short time because of irresponsible lending that the US real estate market became a house of cards. We have much stronger fundamentals in Canada and have historically conservative lending institutions. I believe the GTA will rebound like Vancouver and we are already beginning to see it happen..
5. JG – What are you monitoring to see what’s cities are about to grow. Any indicators that a cities homes prices should rise more dramatically then neighbouring cities.
CA – This is a tough question. The only thing you can monitor for one city over another is demand. A few things that can drive demand are; new amenities and infrastructure, municipal water. proximity to public transit etc
6. JG – The banks keep taking about stress test, higher interest rates and the increase in consumer debt ratio. Are Canadians taking on too big of homes?
CA – In some cases Canadians maybe taking on too much home. However, mortgage defaults were less than 2000 in the province in 2016 and are about the same this year. Foreclosures are almost non-existent. That could change if interest rates rise dramatically but I believe the government will be cautious in doing so. Much of the Canadian economy is spinoff from the real estate industry. Although interest rates have risen a little, it is a sign that our economy is doing well enough to support the rise and that people are making more money. Those factors should help sustain our market.
Christopher Alexander -RE/MAX | INTEGRA Ontario-Atlantic – Regional Director – https://www.remax.ca/
Jared Gardner; President www.Investment-Property.co 647-338-4475