2019 Real Estate Predictions for Etobicoke

Are you wondering if you should buy or sell in 2019? Or have you already decided to make the move and want to know what to expect from the market? While real estate will always be somewhat of a guessing game, it doesn’t need to be a complete mystery. We’ve used our extensive experience and knowledge in the market to come up with nine 2019 real estate predictions for Etobicoke. Let’s jump in!

1. Pricing for Location Will Be Crucial

In 2018, it’s no surprise that great houses in great South Etobicoke neighbourhoods have proven to be extremely popular. This will continue in 2019, but it’s important that pricing strategies are carefully considered so as not to put off buyers. Pricing at market value will continue to be the best way to go.

2. Interest Rates Hikes Won’t Deter Buyers

We keeping hearing about the dreaded interest rate hikes and the impact they might have on the housing market. However, even if they come to fruition, they likely won’t be significant enough to deter buyers. The economy is expected to slow down, and problems in Alberta’s oil industry, tariffs from the US, and the uncertainty of trade between the US and China will all lead to a more cautious approach to interest rate increases.

3. The Market Will Be More Balanced

The 2019 market is likely to be more balanced between buyers and sellers. Buyers will have more choices with more homes for sale. On the seller side, houses will take a bit longer to sell, and gone are the days where all houses sell in a one-week timeframe. In this market, it’s a good idea to consider selling before buying. This means you’ll know exactly how much you can afford on a new home.

4. Sellers Will See More Conditional Offers

The condition of financing becomes the norm as banks are insisting that buyers include this in their offers. On tougher-to-sell properties, we’ll see the return of offers conditional on the sale of the buyer’s home (we haven’t seen this for years). Due to the introduction of more conditions, we’ll start to see the potential of more firm deals falling through before closing.

5. Quick Sales Won’t Be the Norm

In the past, it wouldn’t be uncommon to see homes snapped up within days of hitting the market. But things are set to slow down and sellers shouldn’t be expecting to sell in record time with little effort. The proper preparation and marketing of your home is critical in this market, and hiring an experienced realtor with a proven track record is more important than ever. In the later part of 2018, we saw homes sitting on the market, and only selling after being relisted with an experienced agent.

6. The Rental Market Will Continue to Be Tough

The rental market will continue to be lucrative for investors and owners, but tough for renters. Some would-be first-time buyers have been shut out of the housing market due to high prices, and some downsizers are choosing to rent instead of buy. As a result, there will be more demand for rental units than there are available.

7. The Condo Market Will Continue to Be Hot

The condo market has been hot for a while now, and isn’t showing signs of slowing down too much in the near future. Etobicoke Condos are still more affordable than detached homes and represent an attractive option for first-time buyers and hands-off investors.

8. Move-Up Buyers Will Continue to Win

The biggest winners in Etobicoke real estate over the past year have been those who are graduating from a condo to a detached home.  The spread between condo prices and detached homes continues to narrow, so selling a condo and buying a home is an attractive option if the time is right.

9. Return of More Investors to the Market

In recent years, some investors may have been turned off the Etobicoke real estate market for various reasons, including fluctuating prices and strict financing rules. In 2019, with price stabilization, less competitive Etobicoke bidding wars, and banks being a bit more flexible on financing, investors will be more willing to return to the market.

Happy house hunting, from your ThompsonSells team!