Photo: Jams Bombales
The spring of 2017 saw GTA home prices reach record heights, as real estate investors rushed to get into the red hot market. While things have cooled considerably over the past year, many worry that prices are still too high for the average would-be homeowner.
One thing that could keep prices from skyrocketing? Stability, according to Ben Myers, president of Bullpen Research & Consulting.
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“When uncertainty enters the market, speculation begins to occur, we see prices start to climb rapidly,” said Myers, at the Ontario Real Estate Association’s 2018 Ontario Housing Summit on Wednesday. “The more predictable the level of housing supply, the more prices will increase at a reasonable pace.”
While the GTA market is currently in a relatively cool phase, it has begun to tighten in recent months. In September, new listings dropped 3.1 percent year-over-year.
“As the GTA population continues to grow, the real challenge in the housing market will be supply,” said Garry Bhaura, president of the Toronto Real Estate Board, earlier this month.
As demand continues to outpace supply, many industry experts are predicting that prices will continue to rise heading into 2019.
“When you start looking at 10-year averages, I think prices are heading in a more healthy direction, as opposed to the large peaks and deep valleys we’ve seen over the last year or so,” said Cam Woolfrey, a sales representative with Royal LePage Signature Realty, speaking with Livabl last month.
In other words, the stability that Myers believes is necessary to keep prices from reaching new heights might be here — at least for now.
“As long as there is a reasonable level of supply, and the market behaves in predictable ways, prices should increase [at a slower pace],” said Myers.