RE/MAX recently released its 2019 Housing Market Outlook, reporting that Canada’s housing market will continue to stabilize next year.
According to the report, the average sale price is estimated to increase 1.7% in 2019. High interest rates will likely slow down activity with just 31% of Canadians saying they feel the higher rates have not prevented them from getting an affordable mortgage. RE/MAX believes this number will shrink in 2019. In a separate study, RE/MAX found that 83% of its agents and brokers believe the rising interest rates will make it more difficult for people to buy a home next year.
In Toronto, the rising interest rates and mortgage stress test slowed down real estate activity. The average sale price fell 4% to $789,181, and the number of transactions dropped 16%. With detached homes still above the $1 million mark, the resale condo market was super busy, accounting for 37% of total residential sales in the city. RE/MAX predicts the average home sale price in Toronto will increase 2% in 2019.
"Due to the stress test and increasing interest rates, we are seeing more buyers in traditionally affordable regions in Ontario unable to enter the market," says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. "This is particularly true for first-time buyers and single millennials, as evident in cities like Brampton, Kingston and Durham."
RE/MAX also adds that Oakville and Barrie will see slower activity in 2019 due to the stress test and rising rates. From 2017 to 2018, Oakville saw a 13% drop in prices, but the average sale price is still at $1,078,595, which is the highest across Canada. The average sale price is expected to jump 5% in Oakville next year.
If you’re thinking of selling and live in Ottawa or London, then 2019 is your year. RE/MAX says these two areas are sellers’ markets. According to a recent report from Zoocasa, Ottawa is the fifth top sellers’ market in Ontario, just ahead of London in the sixth spot. In case you’re wondering, the top sellers’ market in Ontario is Thunder Bay.
If you’re looking to buy soon and want to see your value increase in 2019, then you should buy in Windsor sooner rather than later. The homes are relatively affordable, averaging just under $300,000, and prices are expected to spike by 10% in 2019!