Whenever there’s an upcoming election, sellers and buyers alike question their real estate plans. Will the market be affected? Should you wait to buy/sell your home until the election has passed? Or should you jump the gun and make a move now? The answer might surprise you.
While the results of the election could change the market in the long run, it’s the public perception of the election that causes changes right now.
Toronto’s Real Estate Market
The current real estate market in Toronto is somewhat unstable. September, among other months in 2019, saw a decrease in new listings by 1.9 per cent. Yet, house prices are increasing month-over-month.
- In January 2019, the average house price was $735, 874.
- In May 2019, the average house price was $838, 261.
- In September 2019, the average house price was $843, 115.
Many are concerned about the cost of housing going up while wages struggle to keep up with the growth. But, it’s not just Toronto that’s experiencing an inflated cost of housing. Vancouver and Victoria are both experiencing the same anxiety. The pending election is making all types of real estate players question their next moves.
Housing is certainly going to be a hot topic of debate for this election.
Before an election, buyers might feel inclined to wait and see what happens post-election and developers might hold off on building plans. Those who are negatively affected by the current market might wait to see if it improves. Canadians will look at the candidates’ plans for the housing market and anticipate what those changes will mean for them. It could cause some people to wait and others to act now.
What Are the Different Parties Promising?
The Liberals are promising a first-time homebuyer incentive that would subsidize 10 per cent of the purchase of a new home. This would increase the number of eligible buyers in the market because more Canadians would be able to afford housing.
The NDP party committed to building 500,000 affordable housing units across Canada. This would create a supply of housing options that more Canadians could afford, especially in cities where there’s a lack of supply.
The Conservatives want to increase the housing supply in Canada by relaxing building regulations and increasing the maximum mortgage from 25 to 30 years. This, in theory, would increase the number of homes available as well as the number of eligible buyers.
You can see, each party has plans to improve the market in, what they believe is, the best way. However, we won’t truly know if waiting to buy or sell was the right choice until the post-election buzz wears off. Until then, we’ll see some buyers and sellers jumping the gun while others opt to wait and see.
When buying or selling your home, find a realtor that’s up to date on Toronto’s real estate market and has the experience to navigate it. Contact Ed Abdou for outstanding real estate service that you can depend on.