Photo: Yu-Chan Chen/Flickr
One of Livabl’s most viewed Canadian housing market stories of the year was focused on Torontonians looking for other more affordable housing markets in their home province.
But what will Toronto real estate news look like in 2019? Based on recent commentary and interviews, we’ve pulled together the Toronto housing market headlines you’re likely going to see in 2019.
Toronto recovery aided by slower rate of home construction
Both Toronto and Vancouver have faced challenges this year, particularly on the single-family home side. However, they appear to be set for different paths in 2019.
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In late November, Capital Economics suggested not only is Vancouver “more overvalued,” but it will also be saddled with more oversupply thanks to an overly-bullish rate of construction.
Vancouver is building 1.2 units per newcomer to the city this year, versus 0.5 in Toronto. Vancouver’s elevated rate of construction is expected to take a toll on pricing. As more units come onto the market at a time of limited demand, builders may have to compete with each other, dragging prices lower.
Immigration continues to drive demand for Toronto housing
There are multiple headwinds for ownership-housing demand in Toronto — higher interest rates and mortgage stress to name two — but immigration isn’t one of them.
TD says it expects population growth will be healthy “for the foreseeable future” and that will benefit some cities more than others.
“With many of these new Canadians destined for ‘landing pad’ cities such as Toronto and Vancouver, demand conditions should remain healthy,” writes TD Economics in a report this month.
Toronto’s housing market gets a clean bill of health in 2019
Although the Toronto residential real estate market appears poised to outperform Vancouver as the former benefits from population growth, the overexuberance witnessed in recent years isn’t set to return.
That’s according to a prediction from Cam Woolfrey, a Royal LePage Signature Realty sales rep. “I think prices in the GTA are headed in a healthier direction, moving into 2019,” he told Livabl in an interview this fall.