Consumer confidence is improving, as well
In its latest market survey and forecast, Royal LePage reported a 0.4% year-over-year decrease in the sale price of a home in the Greater Toronto Area as of Q3 2018, slightly down to $836,402.
This is despite some steady quarter-over-quarter gains in multiple locales, according to the analysis.
However, Royal LePage Signature Realty president Chris Slightham stated that this should not be taken as a sign of the market situation turning for the worse.
“The GTA housing market is seeing steady demand for housing, despite the diminished purchasing power of many would-be buyers as a result of rising interest rates and the new mortgage stress test,” Slightham said.
Read more: New Toronto development promises affordable condos
“Consumer confidence appears to be returning to the market. In the third quarter, we saw the tail end of a correction, mostly concentrated in the ‘905’, with the market now shifting toward a healthy, moderate recovery. This is providing welcome relief to buyers compared to the recent market frenzies seen in the region.”
The Royal LePage report predicted that the aggregate price of a GTA residential property will grow by 2% in the final quarter of the year, up to $853,097.
Slightham noted that Toronto’s solid reputation as an economically competitive and culturally diverse metropolis is what will keep magnetizing buyers, both domestic and foreign.
