For another year, the Toronto real estate market has been a hot one. With exceptional growth already underway in 2017, and positive projections for the rest of the year, it’s no wonder why people are rushing to get into the market. And if you’re one of those people, there are some pretty important things you need to know before you dive in. Here we break down the key trends and projections to understanding the Toronto real estate landscape.
The selling price of the average Toronto home has continued to skyrocket upward at record highs going into 2017. Part of the reason for such a stark climb is the increase in demand and dwindling supply. And the projections show that there’s to be little change in this department. Inventory levels are expected to remain low, which will, in turn, put pressure on pricing to continue to shift upwards.
The new mortgage laws that came into place in 2016, will make it increasingly difficult for new buyers to enter the market. So, you can expect to see more people shifting to the suburbs and buying property there. If we expect any corrections or slowing of the market, this will be the driving force behind the wheel. If you are looking to get ahead, position yourself in a suburb that’s in an up-and-coming growth area to receive the best returns.
The local economy in Toronto continues to be strong, immigration is steady, and the interest rates are still at an attractive rate for buyers. These market factors which have been driving the overheated sellers’ market are projected to continue to persist well into 2018.
With ownership being out of reach for many, long-term renting has become increasingly popular. And developers are reacting to the need by building more condos and townhomes that fit the needs of long-term renters and families. If you have the available cash to purchase a condo or townhouse in an up-and-coming area, you could build equity quickly by renting it out in this market.
With the incredibly high hydro costs in Ontario, tenants and purchasers are looking towards energy-efficient buildings and homes to keep utility costs low. Plus, green buildings are becoming increasingly popular among informed renters and buyers, with the pressure for energy conservation and sustainability requirements on developers and owners following suit.
The Toronto market remains very hot going into 2017, and as the city becomes an increasingly desirable place to live and play, you can expect to see continued growth going into 2018.