Wow, what a great summer! I managed to take some time off and travel, and it was great to take a break and recharge. Now I’m back at it with renewed energy – and ready to hit the fall market running. While I was away, the rest of my team did a great job holding down the fort – a big thanks for doing that, especially to our amazing assistant Torrie!
I hope you all had a chance to relax this summer…but now it’s back to work for all of us, so what better time to catch up with what’s happening in the Toronto Real Estate Market?
The weather may be cooling but the market is heating up
The fall market is already well underway (even though fall doesn’t officially start until September 22!). It usually starts to heat up as soon as Labour Day is done and everyone is back from summer vacation – and this year has been no exception. While there’s been a bit of an uptick in inventory, it’s still not nearly enough to meet demand. In fact, lack of quality inventory is still the biggest challenge facing the local real estate market.
The stats say it all: the number of sales is up 13.4% over this time last year, which is great. But active listings are down dramatically: 11.2%. There are simply fewer homes for sale – and that’s driving demand and price way up. The average price across the GTA is up 3.6%, sitting at $792,611 – and it will only go up. We’re still seeing multiple offers on prime properties, and competition remains fierce for anything under #600K. Studio condos are now selling in the $500K range.
There’s no relief in sight for the challenges caused by lack of inventory
In the upcoming federal election, housing and affordability are likely to be a hot topic; there’s definite pressure on the government to do something. Ideas have been floated around increasing taxes on non-residents and foreign buyers, and there’s been some talk about loosening mortgage stress tests. But the real challenge is finding solutions that work for small towns and big cities alike – there’s a huge disparity in property prices between them.
For example, the government recently introduced a program to help out first-time buyers. Which is great, but it only helps buyers looking at properties under $500,000. That does pretty much nothing for first-time buyers in Toronto, where entry-level properties are going for prices a lot higher than that.
Toronto’s on the world stage
The past few months have really put the world’s eyes on our city. Not only are we home to the NBA champions (yay, Raptors!), but also to Canada’s first US Open winner, tennis prodigy Bianca Andreescu (#shethenorth!). Plus, there’s the Economist’s influential 2019 Livability Index, which came out earlier this month: Toronto placed #7 of the most livable cities in the world, faring particularly well in the categories of health care, education and stability, which all scored a perfect 100. It’ no surprise people want to live here.
My advice? Prices will only go up – buy now. Get into the market now if you can, hold your real estate, and consider investing. Even in this challenging market, there are still opportunities, depending on your budget – and your willingness to look outside the typical hotspots.
If you have any questions about neighbourhoods, market trends, investment options or anything else real estate related, give us a call – we’re happy to talk.
