GTA prices down, but evidence of steady recovery persists
In its latest market survey and forecast, Royal LePage reported a 0.4% year-over-year decrease in the sale price of a home in the Greater Toronto Area as of Q3 2018, slightly down to $836,402.
This is despite some steady quarter-over-quarter gains in multiple locales, according to the analysis.
However, Royal LePage Signature Realty president Chris Slightham stated that this should not be taken as a sign of the market situation turning for the worse.
“The GTA housing market is seeing steady demand for housing, despite the diminished purchasing power of many would-be buyers as a result of rising interest rates and the new mortgage stress test,” Slightham said.
“Consumer confidence appears to be returning to the market. In the third quarter, we saw the tail end of a correction, mostly concentrated in the ‘905’, with the market now shifting toward a healthy, moderate recovery. This is providing welcome relief to buyers compared to the recent market frenzies seen in the region.”
The Royal LePage report predicted that the aggregate price of a GTA residential property will grow by 2% in the final quarter of the year, up to $853,097.
Slightham noted that Toronto’s solid reputation as an economically competitive and culturally diverse metropolis is what will keep magnetizing buyers, both domestic and foreign.
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