Photo: James Bombales
While GTA home prices remained relatively flat last quarter, they are expected to pick up in the coming months, according to a new report from Royal LePage.
By the end of Q3 2018, the aggregate price of a GTA home is predicted to rise 2.1 per cent quarter-over-quarter to $838,984.
“Buyers looking in the GTA have found temporary relief, which is a stark contrast to the runaway price gains that characterized this time of year in 2017,” reads Royal LePage’s House Price Survey. “The City of Toronto proper has remained relatively stable with moderate year-over-year home price increases [the last two quarters.]”
But the market has finally begun to absorb recent policy changes, including a mortgage stress test which came into effect in January, according to Royal LePage president and CEO Phil Soper.
“What we’re seeing in our most recent data is an uptick in property prices across all property types in Toronto proper,” he tells Livabl.
That means that the housing market may have bottomed out in June, and could begin to see some price appreciation in the third quarter.
“For the next three months we’re predicting that we’ll see the decline in prices reversing,” says Soper. “By the end of the year we could see a full 5.6 per cent price appreciation.”
To Soper it appears as though the traditional spring bump in sales may have been pushed back, as anxious sellers and buyers waited to see how the market would adjust to the new stress test.
“Both buyers who had to readjust their expectations, and sellers who were worried about listing their home in a cooler market, seem to be slowly returning to the market,” he says.