The economic crisis in the US seems to have had it’s impact on the Canadian economy. There are fewer transactions and average prices have also dropped compared to the same time last year. According to the Toronto Real Estate Board, in central Toronto the average price has gone from $400,000 in January 2008 to $345,000 early this year.
Properties are also sitting on the market longer than the same time last year. But this is great news for buyers, because now is the perfect timing for first time buyers or those wanting to own a home but just couldn’t afford it until now. The declined average prices and the low interest rates are a great mix for buyers. Sellers will have to ask for the right price and put in extra effort to make sure their property shows at its potential.
We all know that the real estate market is seasonal. As the summer market approaches, there is more activity in the city than in the previous month. Generally speaking, the Toronto real estate market tends to warm up in late spring and then begins to drop in July. Canada’s Mortgage and Housing Commission estimated around 75000 sales this year.
If you go around Toronto, you’ll see the “Condo for sale” signs almost all over town. Condo builders may even find it challenging to face the current demand of the market, considering that Toronto’s population has increased by 1 million over the past 10 years.
Actually, condos sales were over 50% of all the single family residential sales in Toronto’s market in February last year. Moreover, first-time buyers are the main segment of buyers in Toronto, as they are more motivated to own a home in Toronto. Some of them, however, tend to buy homes in the suburbs because they are somewhat smaller, but having only the factor of size in mind, can be quite tricky.
All these indicators reveal that the real estate market is extremely viable. Canadians are not just buying homes but they are also investing in commercial and investment properties as well. This is one of the reasons why many foreigners have chosen Toronto for their real estate investments.
The great potential and the fast growth of the industry are among the main reasons why many people choose to be part of this revolution. Another good reason is given by the political climate, as the government has been very supportive and helped the growth of the real estate industry.
More homeowners or first-time buyers are more and more interested in finding ways to avoid long daily drives in order to save more time and fuel. This explains the shift from suburban sales to Toronto downtown sales, as it simply reveals the factors affecting the sales trend in Toronto are not just economical anymore, but are more about the change in lifestyle and need for more practical ways of living. Real estate experts believe that there will be around 75,000 people to move into the city every year for the next 20 years.