What Happened in Real Estate Last Year & What’s Ahead
Here’s what happened in the Simcoe County real estate market in 2018 and what to expect in 2019.
The 2018 Year in Review
If 2017 was the year of the hyped-up market, 2018 was the year of the real estate market getting back to normal.
- The number of sales was down approximately 15% in Simcoe county from 2017.
- Prices in Barrie and surrounding area have stayed flat with a nominal decrease of 3%, which have stabilized.
- The average sale price in some of the smaller markets has increased: 10% in Midland, 6% in Orillia.
- List-to-sale prices in Simcoe County have dropped. Although multiple offer situations are still a regular occurrence in the current market, there were fewer in 2018 over the previous year.
What to Expect in 2019
Although no one has a crystal ball and can say for certain, I don’t believe interest rates will rise drastically in 2019 as there may be negative ramifications in our economy with that approach. There may be one or two minor interest rate increases this year, but I’m not expecting anything that will significantly impact the market.
Those sitting on the sidelines waiting for the real estate bubble to burst could be waiting for a long time. Stats Canada is predicting as many as 330,000 new immigrants to Canada in 2019 with a large percentage landing in Toronto, all needing a place to live. This accompanied with an influx of millennials entering the real estate market and a continued shortage of land for builders to bring out new inventory makes the real estate market a solid place to invest.
Buyer confidence is what really affects the market. Now that we have had a stable year under our belt, I believe confidence in real estate will continue to increase in 2019.
CEO & Broker, Faris Team
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