A new year and a new decade! I don't know about you, but I find it hard to believe we are in 2020 already. Before we start making predictions for the new year ahead, let's look back and recap what a year 2019 has been!
Going into the year, there was a lot of panic and indecision for both sellers and buyers. They were left wondering what the impact of government intervention would be on the real estate maket. As 2019 progressed and sellers adjusted their expectations, buyers made their way off the sidelines and once again the market began to pick up.
In some areas of the GTA bidding wars were still common place, but it was not crazy like the first quarter of 2017 (I'm sure you all remember that). The market seemed to balance out. Most sellers did well, even exceptionally if their homes warranted it. It was also a good year for buyers and there were some nice deals to be found.
Toronto Real Estate Board President Michael Collins reported: Total TREB sales for the calendar year of 2019 amounted to 87,825 - up 12.6 percent compared to the decade low 78,015 in 2018. On an annual basis, 2019 sales were in line with the median annual sales results for the past decade. For the calendar year 2019, the average selling price was $819,319 - up by four percent compared to $787,856 in 2018.
3 Top Stories That Dominated The Real Estate Headlines in 2019
1. CMHC First Time Buyer Incentive Program
The FTBIP is a shared equity mortgage with the government of Canada. It offers 5 - 10 percent for a first time buyers purchase depending on the type of home. The homebuyer must repay the incentive within 25 years, or when the property is sold, whichever comes first. There are other caveats involved in this plan. In my opinion this program is a bust and was mostly political, but if you would like more information, please reach out and we can discuss it further.
2. Airbnb Regulations
Airbnb properties must be your principle residence. Short term rental operators can rent 3 bedrooms or their entire property for a total of 180 days and there will be a %4 tax on rentals less than 28 days. The city will be licensing short term rentals. We will have to wait and see how this is enforced and what if any impact it will have on the Toronto rental market.
3. Updating The Real Estate and Business Brokers Act (REBBA)
The Ontario government has introduced the Trust In Real Estate Services Act, a bill which proposes changes to the REBBA, 2002 and if passed by legislature, the changes would support and strengthen consumer protection and professionalism in the real estate sector. This is good news for consumers and the profession as both will benefit from modernized legislation. (reco, 11/19)
Looking back over the year and decade, it has been a great time to be living and owning real estate in the GTA. We have enjoyed helping our clients find their forever homes, downsize, upsize and purchase investment properties. We are excited about the new year and decade in front of us. We can't wait to help you with all of your real estate endeavours!
Stay tuned for our 2020 outlook blog.
HAPPY NEW YEAR!