With a reputation as a lovely, livable city, Toronto understandably has one of the country’s most booming housing markets. It’s vibrant culture, top universities, and diverse population all make it an ideal place to buy a home and settle down.
As a Canadian real estate agent located out of Markham, Ontario, Najmi Muhammad is attuned to the city’s real estate trends. Here, he outlines a few facts to keep in mind when it comes to Toronto’s real estate market.
The Market is Competitive
According to recent statistics, 76% of Canada’s national wealth is currently wrapped up in real estate. Since the Toronto area is Canada’s largest housing market, it’s easy to imagine the scale of its growth. Real estate in Toronto is in higher demand than ever. With a limited supply of properties being snapped up quickly, the city’s real estate market has budded into a competitive, cutthroat scene.
Even so, real estate experts like Najmi Muhammad remind those considering a property purchase that the rewards outweigh the challenges. After all, Toronto’s market is competitive for a reason: it’s worth it.
Policy Changes Are Opening New Doors
Before 2018, the city’s laneways were reserved only for cars. Building projects reserved those zones entirely for garages and parking. Recent legislation, however, has adjusted current policy to allow for the addition of homes in the smaller, cozy spaces.
As a result of the recent adjustments, newer, modern living spaces are popping up all over the city, providing more options for those seeking to purchase or rent. The changes are also predicted to open doors for real estate investors, who are capitalizing on the new legislation by flipping old laneway garages into chic and modern living quarters at a considerable profit.
Renting is Pricy
Since the early 2000s, average rental prices have seen a steady increase in the greater Toronto area, and market analysts see no sign of it stopping any time soon. As market demand rises, property values also climb, causing owners to increase rental prices to reflect a living space’s current estimated value. With no sign of slowing, Najmi Muhammad notes that it’s an opportune time to explore purchasing a home as an alternative to leasing from a landlord.
Selling Prices are Stable
Previous years had seen a steady increase of around 10 percent per year in Toronto’s selling prices. When 2017 rolled around, annual increases jumped another 19 percent in just three months. Considering its unsustainable rate of growth, it’s not shocking that the area’s selling prices have since leveled out.
Due in part to Ontario’s Fair Housing Plan, monthly mortgage rates have become more expensive and the area’s housing market has effectively slowed. Since then, selling prices have largely remained stable. According to Najmi Muhammad, this trend can be expected for the immediate future, although steady growth will likely take hold again with time.