Bill's 2018 Market Update
Dear Clients and Friends,
2017 turned out to be a roller-coaster type of a year. We started off very strong or crazy even and ever since the inception of the 15% non-resident tax the market has subsided and now with the implementation of the B20 "Stress Test" rule on mortgages the market will likely be further squeezed. In 2017 , we also have seen 2 X 1/4 % interest hikes and in 2018 we will likely see further rate hikes, altogether 2018 is shaping out to be a challenging year for sellers which means great news for buyers! Supplies are higher hence selections are better which are all good news for buyers and trade up sellers/buyers. We are really getting back to the normal market in 2018 where supply and demand are relatively healthy and hence a more " BALANCED MARKET". What we had in the past 15+ years were abnormal and we are simply going back to normal in 2018.
I strongly advise buyers to lock in their mortgages especially those who are more "rate-sensitive". As for sellers, since the market have had a great run-up, it is a great time to sell and trade down. The party is over. I think we are going back to the more normal and sustainable increases of 3-5% per year in the next 2-3 years which is more in keeping with inflation and wage increases.