According to RE/MAX’s Housing Market Outlook, Toronto home prices have reached new highs this year and will continue to rise.
According to RE/MAX’s projection released on Tuesday, property prices in Toronto will rise by 7% between now and the end of the year. This would add to the already exorbitant costs seen in 2021 in the city’s markets.
Detached homes in Toronto, which became a popular item during the pandemic when many people were compelled to work and attend school from home, recorded the most price rises this year, reaching 14.6 percent. With a 10.6 percent increase, townhomes came in second, followed by condominiums with a 4.2 percent increase.
Although the estimated increase in Toronto is one of the largest in Ontario, a few other cities are expected to have even higher increases. Prices in Muskoka are predicted to rise another 22% by the end of 2021, after already rising between 27 and 37 percent this year, depending on the residence. The rest of the year is predicted to witness a 10% gain in both Kitchener and Thunder Bay.
“As our brokers and agents predict, the fall market activity is expected to remain steady, which is promising, despite the ongoing challenges presented by the Delta variant,” says Christopher Alexander, Senior Vice President, RE/MAX Canada. “This is particularly relevant given the Canadian housing markets is often a good indicator of economic activity in the country, and with the Bank of Canada forecasting economic growth of 4.5 per cent in 2022, a strong fall housing market is a good sign that things may be starting to return to a more natural rhythm.”
Despite the COVID-19 Delta variation taking hold and producing uncertainty, Christopher Alexander, Senior Vice President of RE/MAX Canada, feels the real estate market is still promising.