Toronto Mortgage and Housing Report

The Toronto Mortgage and Housing Report provided courtesy Altrua Mortgage Brokers Toronto, and is supported by data from the Canadian Mortgage and Housing Corporation and the Toronto Real Estate Board. Specifically, the Toronto market is projected to have grown by a whopping 17% in 2016, breaking average pricing records consecutively from 2015. The Toronto Real estate Board expects growth to continue, but to drop to the 8% range for 2017 and perhaps lower slightly again in 2018 given the effects of recent mortgage qualification restrictions and higher mortgage rates. The following forward looking research from the Toronto Real Estate Board and CMHC supports this.

Housing Starts in Toronto and GTA will remain stable. Specifically, 43,000 new housing units are expected to be built in 2016 and lower slightly to 42,000 new units in 2017 and 2018 respectively. Most of this construction will be in townhouse and high rise condo developments. With this said, single house starts are expected to move lower between 6000 to 7000 new units in 2017.  The reason for this a scarcity of lots for single detached homes that will continue to push purchase prices well over the $1,000,000 mark. Accordingly, these affordability concerns will continue to push demand into town homes and condos.

Future Housing Values in Toronto. After record housing sales in 2016, the Toronto housing market values will likely see a reduction in growth in 2017 and 2018, averaging between $756,000 and $794,000 per unit in 2017 and $766,000 and $820,000 in 2018. First time buyers will continue to drive sales, specifically within 30 to 39 year old group. This trend is in part spurred by strong gains in full time employment, especially between 25 and 44 year olds.

Employment and population growth in the GTA are expected to increase. Specifically, employment rates are projected to increase at 1.3% in 2016, 1.3% in 2017, and 1.5% in 2018. This represents a healthy growth in employment. Jobs in finance, insurance, real estate and professional services will see the highest employment growth rates. Expansion of manufacturing in the Toronto area is expected to remain constant, or decline slightly, offset by gains in the services sector.

New Canadians and Immigration in Toronto will continue to boost housing demand. The Federal Government of Canada immigration strategy is targeting anywhere between 280,000 and 305,000 new immigrants in 2016 and this is expected to remain stable. Toronto is expected to benefit from this as the area absorbs a higher than average number of new Canadians. New highly skilled workers is a positive factor for the local economy and will continue to provide support for the housing market.

Toronto rental market is expected to remain strong with vacancy rates between 1.6% and 1.7% throughout 2017. This low vacancy rates continues to lead to higher rental lease rates, and therefore produces continued demand, especially among millennials and new Canadians, towards the housing market. There is also a very strong pipeline of highly educated millennials looking to buy a home in the next 10 years that will continue to provide healthy support for the market in the medium to long term.

Mortgage Brokers Toronto are helping to provide affordability by guiding home buyers and investors into the most cost efficient mortgage products. By promoting whole sale mortgage rates, mortgage brokers in Toronto lower costs of ownership. Toronto mortgage brokers are projecting mortgage rates for 2017 to hover between 2.5% and 3.5% for a five year fixed mortgage. Although variable rate and shorter term fixed rates mortgages could remain closer to 2% in 2017. As we enter 2018, the effects of inflation and the US political situation will be critical factors in how mortgage rates trend.

Please contact your Altrua Toronto mortgage broker for more information on how you can benefit from the lowest mortgage rates, and the momentum of the Toronto Housing Market.