The Toronto Real Estate Board’s Senior Manager of Market Analysis, Jason Mercer, recently published an overview of the Toronto area market and a projection as to what’s in store for 2013. Here are the highlights of the presentation:
- In terms of the broader economy, 2013 will look pretty much like 2012 – continued slow but steady growth in GDP, employment and income, and little or no change in interest rates.
- Affordability will be gradually eroded as prices continue to rise, but will remain strong as long as interest rates remain low.
- The inventory of homes for sale is moving upward, and this will decrease the upward pressure on prices in 2013.
- Selling prices will continue to rise in 2013, but at a lower rate than in 2012, approximately 3%
- The condo market is diverging from the freehold market, as the inventory of condos for sale is much higher than for freehold properties. This means that condo prices may flatten or even fall while freehold prices will increase somewhat more vigorously.
Anyone hoping for a significant market correction in 2013 (with the possible exception of the condo market) is probably going to be disappointed. The most likely outcome is a much healthier and more balanced market than we have see for many years.
If you like to see Jason’s full presentation (approx. 28 min), click below: