Real Estate Cheat Sheet: a new report sees no sign of a bubble burst in 2013
Last week, local real estate observers looked back on the cooldown that took hold of the city’s housing market in 2012. This week, Royal LePage looked ahead to 2013 with a report predicting what the year will bring for buyers and sellers across Canada. Below, we break down the highlights for Toronto’s housing market.
• There will be no bursting bubble: The report echoes the increasingly common view that Toronto won’t suffer a market meltdown. The “fears of a sharp or drawn out collapse are unwarranted,” reads the report, which goes on to explain that the current slowdown is a modest correction due to the fact that home prices have risen more quickly than income for the past three years.
• However, prices won’t rise very much either: The real estate agency predicts that prices for homes will flatten out, with the average price across all categories rising just one per cent to $503,000 from 2012’s $498,000. The more modest sales activity in the second half of 2012 will continue through the first half of 2013, but should improve by the end of the year as employment levels improve.
• The coming year will be good for buyers: Phil Soper, Royal LePage’s president, noted in an accompanying release that the power will shift to the buyers this spring, with more choice for house hunters and more stable prices. That said, in Toronto, there will still be steady demand for single-family homes.