Canadian Real Estate Wealth
While price increases and sales numbers will continue to command much attention in 2017, industry professionals and analysts agreed that the mismatch between existing supply and growing demand will be the main source of consumer anxiety this year.
Royal Lepage Terrequity Realty broker of record April Williams projected a lower number of both new homes and resale listings.
“I don’t see a lot of people making lateral moves. With the closing costs and the cost of homes it doesn’t make sense,” Williams told the Vancouver Metro.
“I think we’re going to see a lot more people that are either up-sizing or down-sizing, which is going to keep the amount of listings low next year — which could create higher prices and more bidding wars.”
Bryan Tuckey of the Building Industry and Land Development Association (BILD) warned that new housing supply will continue to shrink. He noted that only around 2,300 low-rise homes were available in the market as of October, a far cry from the 4,000 in January 2016.
Jason Mercer, director of market analysis for the Toronto Real Estate Board (TREB), agreed that resales will remain very low in 2017. He added that the resulting price increases will compel a significant number of would-be buyers to consider other housing options—most notably, condominium living.
Matthew Slutsky of BuzzBuzzHome stated that the long-running affordability crisis and the inter-generational lifestyle shift have led to the increased popularity of condo units among millennials and young families.
“One of the beautiful things about a condo is that all the amenities can act as your living place,” Slutsky observed, adding that the 29 launches and 131 projected completions this year will foment greater transaction volume in this segment.
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