2016 has been an extraordinary year in real estate. Many markets in southern Ontario have broken records in terms of growth in the number of sales and in price appreciation. And we continue to hear of homes selling with multiple offers within days of being listed. So can this strong market continue into 2017? We asked a local real estate expert, Barbara Beers, of Royal LePage Burloak Barbara Beers Brokerage to share her opinions. TREB: What would you say were the main drivers of the market in your area in 2016? Barbara: In 2016, we had a combination of a lack of inventory and very strong buyer demand at all price points, in part caused by our continued low interest rates. This resulted in upward pressure on prices, a frenzied pace of sales and multiple offers becoming the norm. TREB: Are there any clouds on the horizon? Do you think there are any economic or government policy changes that might affect how the market performs in 2017? Barbara: I think interest rate uncertainty is starting to be a factor. The US Federal Reserve has started to increase rates marginally and most people expect Canada to follow suit before long. Any rise in rates will affect the consumer’s buying power. The banks are also tightening their mortgage policies which will make it more difficult for some buyers to qualify for the mortgage they want and ultimately affect buyer confidence. Further government actions is also a concern. TREB: What are you advising your clients to expect in 2017 in terms of the strength of the market? Is the current environment sustainable? Barbara: We are still predicting positive growth in 2017, but not at the frenzied pace of 2016. Hopefully we can return to a more balanced market as the year progresses with additional new housing starts and an improving economy. TREB: Given your expectations, what advice would you give to a client who is considering making a move in 2017? Barbara: If you are buying and selling in the same market, your price differential remains constant. However if we see a softening in prices in 2017, this might be an excellent time to sell at a high, and then wait for the market to level out before purchasing. We also believe there will continue to be great opportunity for investors, as the rental market continues to strengthen.