It’s not all bad news for Toronto Real Estate Board President Chris Mason.
The Toronto Real Property Board is now forecasting a sales rebound after an 8.7 per cent year-over-year fall in sales last year.
The board’s executive committee is hoping the rebound in sales could lead to more than $10 billion in sales for 2017.
“It’s been a tough year for sales in Toronto, but we’re getting to a place where we can start to look forward,” said board president Chris Mason, adding that the board’s sales outlook is positive.
“Sales have gone down.
They’ve gone up.
It’s a very positive and stable environment.”
The board’s 2017 sales outlook was slightly better than a forecast from last year, but it still looks very tough.
It expects to see just over $2.7 billion in property sales for the year, down from $3.2 billion in 2017.
That’s a drop of 5.2 per cent, or $3,700 per home.
That means a total of $10.7bn of property sales will come to Toronto this year.
“The board has seen sales in the city fall, and we believe that will continue,” Mason said.
“But we also believe that the overall level of activity in Toronto is higher than we had expected.”
Real estate sales were down 10 per cent from the same time last year and the board expects them to continue falling.
“We are forecasting a 2 per cent drop in 2017 sales,” Mason told CBC News.
“So, that’s not a great sign, but not necessarily an all-over terrible outcome,” he added.
The board expects a $2 billion drop in property prices from last summer, but Mason said it’s unlikely that this year’s numbers will be as bad as last year’s.
“We’re still in the mid-single digits,” Mason added.
Mason said the board is still forecasting a 3 per cent increase in the value of real estate over the next three years, but that’s unlikely to happen.
“If it doesn’t happen, we are going to be in trouble.”
Realtor Chris Rallis of Rallist said that while it’s not surprising that sales have dropped in Toronto since the financial crisis, there is still a chance it will bounce back to normal.
“I think we’re going to see some good sales, some good numbers, but I think it’s going to take a lot of work to get to that point,” he said.
Marton said the Toronto Real estate Board expects to sell around 400,000 condos, 400,0000 units of apartment housing, and 200,000 new townhouses in the next year.