Toronto Real Estate Climate
Overview
Considered one of the most expensive real estate markets, the vibrant Toronto isn’t planning on slowing down. As research showcases, Toronto house prices are on the rise and the process isn’t slowing down. As experts predicted, the first part of 2019 was the buyers’ time. Now experts suggest that the climate will shift in favor of sellers and the prices will skyrocket again. So, what can we expect?
Current State
If in 2018, Vancouver was on the rise in the real estate market of Canada, 2019 is the year of Toronto. As many people are moving to Toronto, the construction sector is growing fast and steadily. Considering the demographic data of the buyers, multi-family and condo prospects are some of the most popular demands.
Most Demanded Property
As already mentioned, multi-family and condo options are in the highest demand. It’s a relatively affordable alternative, considering tougher mortgage stress tests. That’s why single-family residential is less in favor than multi-family options.
The demographic parameters of the Toronto population also affect the current trends and climate of the Toronto real estate market. Considering the fact that the number of people over 65 is nearly as big as the people at age 15, the demand on the senior lifestyle property is high here.
The Rental Options
As the rental rates and mortgage rules are becoming more strict, the demand for the diverse rental options is growing accordingly. That’s why the purpose-built rentals can be found more and more often in the real estate market.
What About Millenials?
As already mentioned, the age group of over 65 is prevalent in Toronto, but the demographic data will shift in favor of Millenials. First-time homebuyers will dominate the Toronto real estate market in the next decade or so despite high prices.
Average Prices In Toronto
As statistics state, the 4,387 properties sold in Toronto in July fetched an average price of $757,365. The most expensive properties you can find here are fully detached homes hitting on average $1.23 million.
As for the rental prices, one-bedroom units are now going for $2,260 and two-bedroom is $2,850, which is the record considering that prices were lower by 15% last year for the same type of properties.
Market Predictions
After the initial crisis in 2017 when prices dropped disturbingly low, the Toronto real estate market slowly started to stabilize in 2018. In 2019 the stats show that the prices are increasing.
- Condos prices increased by 5.9%
- Semi-detached house by 3.0%
And as experts predict the prices will only grow.
Foreign Investors
Despite the 2017 crisis, the biggest investors in the Toronto real estate market still are Chinese homebuyers. The prospect of affordability, a safe neighborhood is still attractive. Although the Chinese investors after 2017 became interested in other cities of Canada, their interest is starting to shift back to Toronto and Vancouver.
P.S Interested in Toronto real estate market? Check out these articles Toronto Real Estate trends and How I can integrate TREB (Toronto Real Estate Board) with WordPress.
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