Hello fellow Urbanites!
Want to know what’s going on in the market? Read on.
If you’re a buyer out there I don’t need to tell you that you’re probably having a tough time snagging your fave property. We’re still experiencing an extremely strong Seller’s market and I don’t see that changing anytime soon.
I was showing a sexy loft to a Developer’s son yesterday and we got talking. He’s been developing since 1978 and has seen ups, downs and everything between. The 80’s, 90’s had some extreme real estate meltdowns with property values crushing the equity of many homeowners.
So why didn’t the urban markets come crashing down in 2008 when the rest of the World (especially the US) was melting down?
Easy. That’s when the World started talking about Toronto. Our banks weren’t as exposed to the insanity that Wall St created, our homeowners didn’t have crushing 80/20 loans with balloon payments and jacked interest rates and there were a ton of jobs being created here. Not to mention immigration.
That’s why we didn’t have a meltdown in 2008 and that’s why we’re not going to have a meltdown now.
Look…I’m not an idiot. Only a fool thinks this market is sustainable. It’s not. There will be a time in the next few years where prices will flatten. It’s happened before (think April 2017) and it’ll happen again.
But our urban markets are resilient.
There are more jobs being created here than ever before…high quality, high paying jobs (think East Harbour) From tech to finance to medical Toronto isn’t a one trick pony (is that the saying??). If one goes down there’s plenty of “umph” in the others to keep our economy and housing market going.
Let’s dig into some stats
Our Urban Centres are performing very well overall. No doubt. I wanted to focus on the East End though. East of Parliament to the Eastern portion of the Beach.
There have been lots of high value detached sales here. More than I’ve ever seen. In fact, the appetite for big detached homes East of the DVP has never been so strong. Semi’s that would have fetched $1.2-$1.3 a couple of years ago are now in the $1.6-$1.8 territory. Detached options that would have sold for $1.5-$1.75 a couple years ago are now fetching $1.8-$2.5mm.
Detached fixer-uppers are averaging around a million.
Semi’s still remain largely unaffordable for most which is why the condo and Townhouse market are flying so high. I kinds feel like a broken record so I’ll stop there.
BUT for those of you in the back of the room I just want to make sure you hear me:
Townhouses and Condos are experiencing a massive bull run right now that should continue well into 2020 as more and more Buyers get priced out of the freehold market.
That’s all I have for you today. Take a look at the infographic below or download the pdf version and put it on your fridge 🙂
If you’d like a deeper dive into the market for your specific street or property type please reach out and I’ll customize one for you.
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