The Boardwalk Talks: The Real Estate Investing Talk Show
Episode 006: Talking real estate investments with special guest Charles Messina
Join your hosts Kenneth Yim and Charles Messina as we talk about the latest Toronto real estate market stats and trends.
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Attention trade-up buyers!
TORONTO REAL ESTATE NEWSLETTER
October 9, 2018
If you’ve been waiting for the time to enter the freehold housing market, there’s probably no better time than now. Read more below.
You may have heard in the news and from other realtors that the average home price is up 2.9 percent, and sales volume is up 1.9 percent from this time last year. Well, that’s the overall GTA market in general. We don’t think that’s good enough. It’s hard to make decisions based on general information.
Let’s take a closer look at the freehold detached housing supply in Toronto and in York Region.
Since the announcement of the Ontario Fair Housing Plan in April 2017, prices have dropped in all of the sub-markets. In particular, detached housing in Toronto has dropped 15.1 percent since then, and is down 1.4 percent year over year. York Region has it even worse, at -24.9 percent since April 2017, and is down -11.6 percent year over year.
It’s no surprise that downtown Toronto condos haven’t really had much impact from the government policy intervention as the average price is nearly half of what a detached house costs throughout the Greater Toronto Area. The average price of a downtown Toronto condo (C01 and C08 districts) is $692,779, whereas the average price of a detached home in Richmond Hill is $1,436,979 and in Toronto at $1,342,363.
Downtown condos have seen the average price drop for four months after the big announcement, and has been on a rise ever since. You may be asking yourself, how long will that go on for? Well, we think that as long as the rents are on the rise, then they can continue to support these rising condo prices. In fact, the average one bedroom rental downtown is $2,248, and two bedrooms go for $3,239 on average based on the Q2 rental report from the Toronto Real Estate Board. Vacancy rates in Toronto are at an all-time low, meaning that the real demand for housing is as strong as it will ever be. Commute times aren’t getting any better, and more and more businesses want to be downtown.
With condos at an all-time high, and freehold homes as an all-time low, this is probably the best time to trade up.
We have collected data for all of the various sub-markets for the past 22 years, based on location and on housing type. We can create a detailed report, custom to your particular market in Toronto or York Region. Just reach out to us to find out more.
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