Pen up demand in the Greater Toronto Area is going to be unleashed next year, according to Laurentian Bank Securities’ chief economist.
Sebastien Lavoie says the introduction of the Fair Housing Plan in April cooled the market, and that the inactivity is temporary. A lot of people wanted to enter the market, but with massive year-over-year housing appreciation sellers stood idle and constrained the supply of housing. While buyers re-entered the market by summer’s end, Lavoie says it will pale in comparison to next year.
“During the best months when things were up, conditions were overheating,” Lavoie told REP. “It wasn’t just foreigners but domestic buyers who wanted to get into the market, and there was low supply, because why would you put your home for sale when prices are going up 20-25% a year? A lot of potential buyers were on the sidelines to see if there was a cool down and a price correction, but that wasn’t the case, so they started to get back into the market during the late summer/early fall, and I expect that to continue next year because there’s still pent up demand.”