Here’s how the urban communities of Toronto are doing
(if reading isn’t your jam, just scroll to the bottom for the infographic)
What a ride we’ve had for the past couple of years. Gains on gains on gains and anther one and another one aaaaaand another one! I wish I could report that things are calm and prices are back to affordable levels. But I can’t. In fact, I don’t think I ever will. As I said in an earlier blog post: Affordability is not a problem that can be solved.
In 2008 when the rest of the World’s markets came crashing down, Toronto stood strong. Immigration is high. Unemployment is low. High paying tech jobs are here and only growing. All indicators point to consistent demand for Toronto Real Estate. Of course only a fool would expect prices to consistently show gains on gains. There will be corrections, ups, downs etc.. Real Estate is and always has been a buy and hold play.
The Bank of Canada just today announced no change in the benchmark lending rate but did mention rate increases will be necessary as we move forward into 2018. We can’t predict how rate increases are going to affect the market but what we’re seeing now as a result of the new stress tests taking hold January 1 is folks opting for the 30yr amortization decreasing their monthly mortgage payment. Qualifying on the 30yr mortgage seems to be getting most folks around the stress test and keeping most quality buyers in the market.
The great thing about this stress test is that it’s taking many borderline buyers out of the market who could benefit from a few more years of saving before jumping into the market. Sadly, the stress test is also seriously affecting self employed individuals who may have the income to qualify for a mortgage but their NOAs may not reflect their true cash position. They’re a casualty of “war” so to speak.
How’s the market (only 416)?
You can download our handy infographic and post it up on your “goals” vision-board right next to the Lambo (it’s also at the bottom of this post). Remember, you’re going to hear all sorts of figures in media this week and in the coming weeks. Why our numbers may look a little different is because I extract the figures only for Toronto’s Urban communities. You can see the map in the graphic.
were the only home types that trended down year over year with 6.8% and 8.8% drops in West and Central Communities. East of the DVP managed to hold on to last year’s gains with a slight uptick of 1.8%. Seems as though consumers are showing a interest in the East End as places like The New Broadview Hotel continue to put the East on the map. #eastmode
Semi’s in the West showed an amazing 16.37% gain year over year with an average price of $1,132,925 while the Central Regions of Toronto had a decline of 4.6% but maintained an average sale price of $1,287,591. The East again remained steady with a gain of 6.4% bringing the average semi to $949,212. Keep in mind these figures represent the average. Most homes renovated within the past 5 years are fetching 10-20% more than the average.
(as I’ve predicted over and over and over again) led the pack with massive gains in Central and East Toronto with 31.37% and 46% gains respectively. Yes, you read that right. Townhouses East of the DVP are now trading at $911,687 on average. We’re not talking about your basic one bedroom stacked town here. These are house alternatives with condo fees that are fetching unprecedented prices. The West held steady with a modest 6.2% gain but that’s mainly due to lower inventory of quality family sized townhomes. Central and East (especially East) Toronto seem to have the greatest inventory of family sized towns. They sell fest so make sure you’re on the Real Time listings portal we have created for you.
(again as I’ve predicted over and over again) showed massive gains year over year and will continue to do so as we forge ahead into 2018. The West this time led the way with a 29.3% gain swinging past the $600K mark for your average condo (of course many available for less) but these figures are going to continue to trend higher as more and more larger, family sized condos fetch unprecedented numbers. You can’t buy a house so you buy a condo…amirght? Central Toronto had a decent 5.7% gain while the East rewarded homeowners with a solid 14.71% gain.
Anyway, I’ve taken up enough of your time for one day.
Thank you for your attention 🙂