Happy New Year! We hope 2020 will bring you and your family good health, happiness and prosperity!!
Are you thinking about buying or selling in the Toronto real estate market in 2020? Trust the Modern Family Realtor team to help you answer this question for you since it will vary depending on each individual or families personal and financial situation.
Overall, we forecast a moderate growth of 4% – 6% varying depending on the location in Toronto or the GTA and type of property (condo, townhouse, semi or detached). This is based on feedback from our team who are actively buying and selling in the market as well reports from a TD Economist, CMHC and TREB. Below are a few factors that will play a key role in the direction of the real estate market in 2020.
Most economist predict the Bank of Canada will lower not raise interest rates due to a global slowdown, trade war, recession and most other G7 countries already lowering rates. With cheap money to borrow this will help fuel some more appetite for buyers who will be able to afford slightly more in 2020.
2. More Buyers And Less Inventory
We anticipate with the First Time Home Buyer Incentive and record immigration to have a lot more buyers than sellers in 2020. In 2019, we saw record returns from 19% (TSX ) to 29% (S&P 500) in the stock market and some investors may want to take some profit and diversify to real estate in 2020.
Toronto is on the verge of becoming a global city among the likes of New York, London, Paris, Beijing and others. Our strong employment numbers, increasing wages, low Canadian dollar, liberal politics and multicultural and diverse communities are attracting thousands to set root here.
There is a 20% – 30% risk of a global recession hitting in 2020 with Hong Kong already in a recession. Toronto faired pretty well during the 2008 recession but if this does occur it may put buyers on the sidelines and prices may decrease.
We will probably start 2020 with near record prices in Toronto and the GTA. With the significant increase in prices over the past 5 years how much more can buyers sustain? Investors are being more conservative with ROI’s decreasing as cost climb year over year.
Governments and central banks have played an instrumental role in the real estate market. Trumps trade war, the 2020 election, BREXIT, Middle East tensions and China’s slumping economy appear to be the biggest risks that will impact all markets around the world in 2020.
Modern Family Realtor believes the pro’s outweigh the con’s in 2020 and are forecasting moderate growth in prices and slightly lower inventory. Please reach out to us for your free real estate consultation to setup your real estate investment plan for 2020 and be proactive in this tight competitive marketplace.
Feel free to call me directly at 416-705-2444 with further explanation or questions on the above. Also, check out our website at http://www.
All the best for 2020 from the Modern Family Realtor team!
