Looking Back at Real Estate in 2012
2012 was a pretty good year for real estate, all things considered! We had great price increases across the board as sales remained steady even in the face of rising prices and the new rules.
2012 was a pretty good year for real estate, all things considered! We had great price increases across the board (even in Vancouver where prices had fallen for a little bit), sales remained steady even in the face of rising prices and the new rules that came into effect in July really changed things up. Some think itís going to keep the market stable over the next decade, some think itís the worst thing to ever happen to the Canadian markets Ė only time will tell. When it comes to homes for sale though, 2012 was a wild ride!
Prices Rose in 2012
Prices rose in both luxury real estate and traditional single homes across the board through the year Ė Toronto had the highest gains of around 9% over the last year, but other areas saw an average increase of around 5% to 6%. This is a major windfall for the Canadian real estate market, showing that just because the US is having troubles with its home market doesnít mean we have to. This is a marked change from the last 50 years where our markets ran together in tandem, and may be a sign of things to come in the future.
Sales Remained Steady
Sales remained steady over 2012, as did inventory Ė meaning that while home prices are rising there are still many willing buyers interested in investing in real estate. Many analysts were amazed at the rate some homes were going for sale in hot markets like Vancouver and Toronto, with prices that seemed to defy gravity month after month. While 2013 is projected to have a slowdown in the rate that homes appreciate, 2012 was a pretty good year.
Land Transfer Tax Makes More Renters
Land Transfer Tax faced by some in a few select markets turned some would be buyers into renters, making the rental market one of the hottest investments this year. Even if buyers just wanted to rent, they faced fierce competition for 2012 and will most likely continue to face more competition in 2013 with home prices still rising.
June Brings Tougher Guidelines
June and July brought tougher mortgage guidelines, leaving 1 in 9 Canadians in the dust when it came to buying a new home. Itís estimated that of those 1 in 9, it will now take another 3 years to save to buy a home. While this sounds like a bad thing at first, it creates a cascade effect where home sales will continue 3 to 5 years from now.
Looking Forward to 2013
2013 is shaping up to be just as interesting as 2012 was, but no one can tell for sure. Rental markets, luxury real estate and land transfer taxes as well as new mandatory rules for home inspections are all expected to come along this year. While sales are expected to slow down as well as appreciation, no full tilt stop is expected to happen in 2013. Market conditions should remain favourable through 2014.
The Goodale Miller Team is based in Oakville, Ontario, specializing in Oakville luxury homes for sale, is Canadaís #1 Century 21 team for 8 years running.
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