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The Latest Developments in Toronto’s Housing and Condo Market

For many, the beginning of a new year denotes a fresh start. Some people make resolutions to better themselves and their way of living, which may explain why the majority of condo buyers contributing to the boom in Toronto’s real estate market are from foreign countries such as China, Australia, New Zealand, India, Japan, England, and France. And why wouldn’t they want to live here? It’s a known fact that living in Toronto is more affordable than living in any other highly developed major city in the world. According to an article in Toronto Life, Toronto houses cost an average of $7,538 per square metre, compared with $23,358 in London, $12,029 in New York and $10,265 in Mumbai. And it doesn’t end there. 

Over the past two years, the Toronto housing market has been rising in numbers second to the foreign take over contributing to that market. Sales across the GTA climbed to 7,092, an increase of 11.1% from a year ago as stated by the Financial Post. The article goes further to state that “the Toronto housing boom appears to be across all home types. In the semi-detached category, there was an 11% price increase from a year ago to $454,262 on a GTA wide basis. Townhouses were up in price 8% to an average of $367,727 while condo apartments prices also rose 8% during the same period to an average of $338,251. Despite the surge, the Toronto Real Estate Board (TREB) maintains the GTA market remains affordable…” 

While it’s granted that when it comes to stability, affordability and comfort Toronto has it made; the numbers speak for themselves. Realistically, it all comes down to the type of housing you’re looking to invest in and the timing of the investment. For those thinking of investing in the overall real estate market this year, be it a house or a condo, some time in the spring is perhaps the best time to do so, as the market is expected to remain tight for the next few months. 

As the Canadian Real Estate Association (CREA) revealed, sales activity rose by a slight 0.5 per cent in November on a month-over-month basis, while year-over-year sales also rose. However, in the Greater Toronto Area listings in November fell 4.4 per cent, while the average selling price was $479,302, up 2.9 per cent from October, making it a seller’s market for the time being. But have no fear. According to the Canada Mortgage and Housing Corporation’s (CMHC) annual outlook forecast, although the numbers won’t change this year, condominium construction remains strong. 

So in the meantime, here are some highlights of the CMHC conference to keep an eye on if you’re looking to invest once Spring rolls around: 

  • Price growth for condos will wind down as a large number of units under construction reach completion. 
  • High levels of condo construction will help alleviate some pressures on vacancy rates as rental demand remains strong. 
  • Ownership affordability will remain in check as first-time buyers gravitate towards relatively less expensive pockets of the GTA. 
  •  The downsizing trend will gain momentum in the coming years as more baby boomers enter their retirement years.

Please call us at (416) 929-1660 or e-mail us at resupport@axoncapitalrealty.com if you are looking to enter the market and require advice or clarification on this article or any other real estate or mortgage related issue.

Sources:

Brett Archer. “50 Reasons to Love Toronto: No. 15, Everyone wants to live here.” Toronto Life. 7 June 2011.
Link:
http://www.torontolife.com/daily/informer/from-print-edition-informer/2011/06/07/reasons-to-love-toronto-everyone-wants/

Gary Marr. “Toronto housing market still on fire.” The National Post. 6 December 2011.
Link:
http://business.financialpost.com/2011/12/06/toronto-housing-market-still-on-fire/ 

Staff Writer. “Toronto real estate market favours sellers.” CTV News. 15 December 2011.
Link:
http://www.ctv.ca/CTVNews/Canada/20111215/canadian-real-estate-111215/

Staff Writer. “CMHC: Toronto Housing Market to Hold Steady in 2012.” Market Wire. 3 November 2011.
Link:
http://www.marketwire.com/press-release/cmhc-toronto-housing-market-to-hold-steady-in-2012-1581665.htm

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