According to a recent article in the Toronto Star, the chief economist Helmut Pastrick of Central 1 credit union predicts that housing prices could surge an additional 17 per cent by the end of 2017.
He dismissed concerns that the Toronto housing bubble will soon burst and holds that the fears stem from “inadequate models” of analysis, as they ignore the principles of supply and demand. In Toronto’s case, population growth is far outpacing supply, he says.
Citing fears that they will not be able to find an affordable new home as well as the high costs of the land transfer and other costs related to the real estate transaction, Pastrick said that many homeowners have opted to renovate and even expand their owners in lieu of selling. This, in turn, has led to multiple offers on properties, which drives up the selling price, often over the asking price.
He predicts that the average price of a Toronto home, which was $573,183 in 2014, could reach $670,000 over three years.
What does this mean for other regions surrounding the GTA? Pastrick anticipates that markets such as Kitchener-Waterloo and Barrie could see an increase in sales and house prices up to 16 per cent.
If you are thinking of buying or selling your home and would like more information, contact a knowledgeable and experienced Century 21 King’s Quay sales representative today.