The Ontario real estate market has been on a fascinating trajectory for all of 2018 as per several reports. Prices and sales volumes have gone up and then down and then housing costs have increased as well. With 2019 on the anvil, there are quite a few trends worth absorbing from the Ontario real estate market in 2018. Firstly, there has been frenetic lobbying by the likes of the BILD (Building Industry and Land Development) Association and TREB (Toronto Real Estate Board) but there are factors like growth in employment and population that will continue to spur subsequent growth in housing demand. This will naturally lead to prices rising across all key markets in Ontario and boost the real estate market in general.
Close to 700, 000 first-time homebuyers will be targeting properties located in the GTA (Greater Toronto Area) or Hamilton alone over the next 10 years or so according to several studies. The new home supply levels are yet to match demand and hence prices will keep rising as per experts. There was a little moderation in home prices throughout the GTA this year due to factors like hikes in interest rates and some other regulations. However, price growth should be steady in 2019 due to the influx of skilled professionals and population growth along with higher job creation and business growth. These are factors that will all contrive to create considerable demand for housing.
Ontario has already committed to its housing action plan. This aims at creating housing swiftly and offering more choices to buyers along with lowering housing costs overall. The involvement of the Government will be more in 2019 with a mission towards scaling up housing supply and balancing the market. This augurs well for the real estate industry in the long haul. The 40 year-old apprenticeship system will be changed soon in Ontario and with the one-to-one ratio in place, developers will be empowered to hire and train their apprentices more easily. This could give the realty sector a major boost in the long run though the effect will not be visible immediately.
Yet key interest rates may be increased at least for a single time by the Bank of Canada in 2019 in a move that may strain wallets. However, with burgeoning economic growth of markets like Toronto, housing appetite will not be whetted so easily! This is something that should keep the real estate market ticking soundly for a long time to come!