The real estate market in Toronto has grown leaps and bounds in the last 20 years, especially in the last five years. Sales have skyrocketed with homes in the downtown core selling for more than imaginable, some 10, 15 and even 20 percent above asking price. To date, the market in Toronto shows no signs of slowing down, but below are six key facts that will help potential buyers or sellers navigate this ever changing market.
1. One Million
That is the average price of a home in Toronto. This past February, Toronto reached a milestone that had previously only been achieved in the most expensive cities like London and New York. Toronto achieved that milestone and this past summer, surpassed it with an increase to $1.052 million. Many factors contribute to this including the increase in demand for luxury homes; however this hasn’t discouraged buyers, as bidding wars are still very common.
By the end of 2014, there were more than 56,000 condos under construction in Toronto, which is more than what is being built in similar sized cities around the world like Los Angeles and Chicago.
Earlier this summer, CMHC declared that there were almost 3,000 unsold condo units. According to their report, this is an historical high. Not since the early 1990s has the number been that high. This makes the condo market a good choice for first time home buyers and young professionals who will have a lot of properties to choose from and can better negotiate a purchase price that works for their budget. This will also assist in stabilizing the market.
Since 2010, the average price for a Toronto property (including condos) was hovering around $430,000. In just five years, that average has rocketed up more than 50%, recently almost hitting $650,000.The last time the market moved that quickly was back in the late 1980s, with the average price hitting a peak of $273,000 in 1989. The average value didn’t top $270,000 again until 2004.
Overall, in the last decade it has been good to be a homeowner in Canada. Values have skyrocketed allowing many Canadians to build much needed equity for investment, retirement or to pay off debt. However, it is important to be mindful of any changes in the market and how they could affect potential home ownership for new buyers and the financial situation of current owners. Be wary of these facts and the ever changing market and enlist the help of an experienced Realtor to help you with your real estate needs.