6 February 2019

The increase will be supported by a higher number of potential buyers, with strong population growth, low unemployment rate and lower average fixed-rate borrowing costs increasing the influence.

• Stricter market conditions will support a moderate price growth in 2019. The average home price in the GTA will rise to $820,000, getting closer to the 2017 peak and exceeding $787,195 reported in 2018. The condo segment will remain the driver of price growth, while detached home price growth will not exceed the average numbers.

• Ipsos poll shows that the new mortgage stress test has affected housing affordability negatively. According to TREB, on average, home buyers had to qualify for monthly payments about $700 higher than they can afford.

• When it comes to the GTA rental market, TREB believes it will remain tight this year: low supply will lead to rent growth by 7%-9% or even higher for one-bedroom and two-bedroom condos through TREB’s MLS® System.

“Although there are certain difficulties with the economic growth in 2019, the main drivers will stay active. The GTA population will keep growing, as people come here due to the wide diversity of job opportunities. Unemployment will remain very low, and home buyers will be able to benefit from low fixed rates, compared to the previous year”, – noted Jason Mercer, TREB’s Director of Market Analysis and Service Channels.

TREB President Garry Bhaura says GTA REALTORS® reported 4,009 home sales through MLS® last month, – it’s 0.6% higher than a year ago. On a seasonally adjusted basis, home sales rose by 3.4% from December.

“We’re glad to see the small annual gain in January sales, especially with the inclement weather we’ve faced recently. It coincides with our forecasts for higher sales this year,” – Mr. Bhaura added.