If you think buying a detached home in Toronto is impossible now, we hate to break it to you, but it's probably getting worse.
According to a recent report from The Richards Group, the average cost of a detached home in Toronto could reach $3.5 million by 2026.
The Richards Group is circulating data that is raising a lot of eyebrows. On Friday, Redditor Tdotrobot posted a picture of a RE/MAX flyer they received in the Beaches predicting the state of the market in 2026.
REMAX Predicts an Average Detached House Will Cost $3,582,000 by 2026... from r/toronto
The flyer included the chart above, which was originally posted by HuffPost Canada in 2016.
At the time, graph creators Daniel Tencer and Jesse Ferreras based their projections on assumed linear growth (prices rise by the same amount each year) and assumed percentage growth (prices rise by the same percentage each year).
In 2018, the average cost of a detached home in the city was closer to $1.3 million, so if HuffPost is right, prices would nearly double in less than 10 years.
READ: What You Need To Know About The Mortgage Stress Test In 2019
Despite the drastic jump, The Richards Group predicts 2019 will be a stable year for the Toronto real estate market. "We predict 2019 should be a year of stabilization and modest gains," the report reads. In Toronto, RE/MAX predicts a mere 2 per cent price increase this calendar year.
According to The Richards Group, both buyers and sellers are cautious about the market these days due to economic and political fears.
READ: Even Financially Secure Single Home Buyers Hesitate On Buying In Canada
With both parties hesitating, higher-priced homes are likely to sit on the market a little longer than usual. On the other hand, homes under $1.5 million are expected to move quickly.
For east-enders in particular, The Richards Group warns, bully offers are going to be big in 2019.
