Resilience, 2018 Real Estate Word of the Year
2018 has been the year of resilience. Torontonians have shown a strong and determined ability to recover from the many pressures placed on our real estate market.
The comeback is always stronger than the setback!
There were a number of significant new policy changes introduced in 2018. Policies impact housing markets and demand. Recent changes such as tighter lending standards, rising interest rates have contributed to softer sales and lower pricing. Buyers have also shown great resilience to past policy changes and predictions and today is no different.
New Home Trends & Sales
Availability. Affordability. Apprehensiveness. For buyers and developers, each of the three A’s play a role. We simple cannot buy what is not there or exists.
Given affordability challenges on single family homes, there is great potential for growth for town home product. The GTA average product size in 2018 is not typical for an average affordable home.
- New town homes averaged at 2100 square feet and
- New condominiums in the GTA averaged at 900 square feet.
Of course we need land to develop new projects. Residential land sales are down and is becoming increasingly difficult to find available land to develop. We have significant upturn in recent years land trades in both due to volume and increasing pricing. In 2018 it has been slower.
Residential land sales ($ volumes)
- 2016, 8%
- 2017, 52%
- YTD 2018, -21%