The RE/MAX 2018 average residential sale price for the Greater Toronto Area is expected to remain stable.
New OSFI mortgage underwriting rules that come into effect in 2018 are anticipated to reduce buyer purchasing power, and may result in more buyers purchasing condos, which are a relatively affordable option in the GTA.
First-time buyers & move-up buyers will drive demand in 2018
Rapid price appreciation in the GTA defined the market during the first four months of the year before buyer concerns over affordability prompted the Ontario government to introduce their 16-point ‘Fair Housing Plan’ in April. Following the introduction of new regulations, including a 15 per cent tax on foreign buyers, market activity and price appreciation slowed significantly and the market shifted towards a more balanced market as many buyers took a wait-and-see approach to assess the long-term impact of the changes. Affordability is expected to continue to be the dominant concern for buyers in the GTA in 2018.