My predictions for the 2014 real estate market:
1. The real estate market will not crash – I reviewed lots of articles on predictions of last year’s real estate market and found most economists and newspaper articles were proven wrong by the market’s performance. The latest consensus seems to be that the market will grow at a similar pace and teeter between a seller’s market and balanced market. This will translate to price appreciation anywhere from 6% to 10% depending on exact location and type of home. Good news is no one expects prices to fall in Mississauga, Oakville, and Toronto. The exact price is always dependent upon supply and demand of homes in your immediate area and I constantly blog about that.
2. There are no bad markets, only overpriced listings – Sellers will be tempted to list their prices at higher levels and will require price adjustments to sell. Don’t be surprised if some homes sell at 2013 prices.
3. Toronto’s Waterfront – South core will attract more projects. BTW, when on Earth are they going to finish that dog’s breakfast on the Queens’ Quay. I don’t expect any let up on construction till Pan Am Toronto 2015.
4. Condo Projects – A few thousands units are expected to be ready for occupancy in 2014. A lot of investor owners will rely on rental demand to get these units occupied. Last year the downtown core had vacancy rates of around 1% and with demand like that, most units should find tenants.
5. Pre-sale Condos – Construction cranes everywhere in the downtown core represents more competition for sellers and more options for buyers. Not all new condo projects will be worth investing in. High demand areas in the City with quality builders (no glass falling) will continue to attract buyers.
Let’s make 2014 a great year !