All the numbers aren’t in yet, but it’s safe to say that 2017 was an interesting year for residential real estate here in Markham.
The year began on the tail-end of one of the longest runs ever of record price increases for all types of housing. But, as we come to the end of 2017, a new record isn’t being set every month and we all wonder how upcoming mortgage requirements will affect the market. Of course, everyone wants to know whether prices will go up or down in the new year.
So, what does it all mean for 2018? While we’re not going to make any predictions, we see a number of reasons to be optimistic about what 2018 might bring for homeowners and home buyers in Markham.
1. Markham Continues to Grow & Be a Desirable Place to Live
Immigration to the GTA is expected to trend higher in 2018. As Canada’s most diverse community, the city continues to welcome new Canadians who help the real estate market and overall economy remain healthy. The city is also in the midst of its successful Markham 2020 Economic Strategy, which has boosted employment opportunities in the area.
In 2017, Markham was one of the Ontario cities named to the fDi list of Cities of the Future 2017/2018, which is awarded to cities ranked in five categories, including economic potential, business friendliness, human capital and lifestyle, cost-effectiveness and connectivity. Toronto was ranked fourth overall on the list of 421 cities in North and South America.
2. Real Estate Prices & Overall Market Showing Signs of Stability
Bringing stability to real estate markets in the middle of an unprecedented run-up in prices is never easy. So, when overall real estate prices in Markham slipped 9% shortly after the Ontario Government introduced a foreign buyer tax, tougher speculation rules, and a vacancy tax, there was some justifiable concern.
But since that initial dip, prices have remained relatively stable and have actually gone up almost 2% between October 2016 and October 2017, and almost 8% between September and October 2017.
Other signs of health in the real estate market include the fact that house prices, while somewhat lower than they were earlier in the year, are still very near the highest they’ve ever been. And while mortgage rates saw an uptick in 2017, they remain very near their historic lows. Stable home prices and mortgage rates are good news for both home buyers and sellers
3. There’s Room for Growth
A lot of media attention has been paid to the fact that the Toronto & GTA residential real estate prices are the second highest in Canada after Vancouver’s. But industry insiders point out that Toronto’s prices aren’t that high when compared to other cities around the world.
In September, the OECD, or Organization for Economic Co-operation and Development, raised its expectations for growth in the Canadian economy to 3.2% in 2017, the best of any country in the G7 group of advanced economies, which includes France, Germany, Italy, Japan, the UK and the U.S..
While no one can predict the future, there are many reasons to be optimistic about what 2018 will bring for residential real estate in Markham. If you’re thinking of buying or selling your home in the New Year, call us here at The Tar Team, we’d be happy to help you.