As we just passed the official day of Spring, the spring Toronto real estate market is definitely in full swing. With warmer temperatures this year compared to last, we’re noticing more Buyers and Sellers are in the market right now. Every year we always read in the headlines : Toronto real estate bubble or the Toronto market is going to crash, and every year the market defies all those predictions. I believe this year will not be any different.
Top 5 predictions :
1 - The 2 bedroom condo market is going to be seeing a lot activity. New mortgage rules (February 2016) states that real estate purchased over $500,000 will need 10% down for the amount over $500,000. We predict this will push home buyers that don’t have the extra resources to cover this increase into the $450,000 - $499,999 market. It’s very hard to buy a “livable” house in Toronto for under $500,000 so this will move people into the 2 bedroom condo market. We’re already seeing offer dates for these type of condos.
2 - Condo townhouses will be a hot commodity and will be gaining more appreciation in price this year. As the average price of a detached freehold home has been rising well over the $1,000,000 mark, the dream of a freehold home for some buyers is going to stay a dream. Owning a condo townhouse is a safe alternative as most are under 10 years old and don’t require much maintenance other than paying the maintenance fees. The finishes are usually modern so all you have to do is move in.
3 - The freehold house market is going to be as strong if not stronger than last year. Sellers have not been waiting for the spring market to put their properties on the market. Multiple offers have already been the norm since January and will only ramp up since the Spring market is here. Interest rates are still low and competition to own a house with land is still strong.
4 - Areas that were not desirable last year will be this year. We have more and more buyers looking into alternative areas that they would not have set foot in last year. The trend is to move north from the core. We have clients looking for homes in the Dufferin/Eglinton area, where last year most would avoid this main intersection like the plague. Take a look at our blog post about 3 neighbourhoods to watch out for - LINK.
5 - Rental market is still very strong. We are sitting at a 1% vacancy in Toronto. That’s very low! It’s a great time to be a landlord and investor. Good rentals are facing multiple offers. This in turn means higher rental prices and investors are getting to choose from the top qualifying tenants.