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Thursday, August 22, 2019
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The Future of the Toronto Condo Market

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Toronto Homes for sale

In 2012 the sales in “Toronto condo market” looked like this: Toronto condo market represented 51% of the sales and detached homes represented 26% of the sales. There are numerous reasons behind the popularity of Toronto condos. The topmost reason among them is the affordability factor and then comes the lifestyle choices for the younger generation as they lead very busy lifestyles and perhaps don’t have sufficient time to devote towards the maintenance issues that a house entails plus condominiums provide a great sense of community and security.

What are people actually buying when they are buying Toronto condos?

The primary preference for investors remains one bedroom and dens i.e. 1+1 and this preference clearly dominates by a large margin. This is because of the obvious reason that they can rent the unit as a 2 bedroom solution which would appeal greatly to students. In the recent years there is tremendous increase of foreign students coming to Toronto for various studies. The secondary preference is the 1 bedroom unit followed by the 2 bedroom units. In the present scenario there is not a great demand for 3-bedroom units but probably as the years pass on and affordability becomes more of an issue it is estimated that families will turn to 3 bedroom units as a feasible choice.

Experts say that there are some strong market fundamentals for 2013. There are total 237 new high-rise builds under construction which represents 60,713 new units approximately. There is another surprising statistics which reveals that by the end of 31st Dec 2013, 88% of all those units are expected to be sold out. Statistical research highlighted some important aspects of the Toronto Condo market which says that if the housing needs keep pace with our population growth, then housing supply is not sufficient to meet this growth.

Research has revealed Canada as the most urbanized country in the world. Canada is 30% ahead of the United States and just ahead of Australia in terms of urbanization. Predictions for bank interest rates for 2013 are that interest rates will remain low for the foreseeable future. For the 5th consecutive year Canada’s banks have been rated as the most sound in the entire world. There are number of Toronto condo projects seem to be coming up to the market this spring accelerating the demands on the construction industry. 2007 (beginning of 2008) was remarkable year in the history of the Toronto condo market. This year had record breaking sales numbers week long line ups to purchase preconstruction condo units. With the current state of the economy south of the border it is inevitable that the Canadian economy will be affected by the United State’s slowdown. Investors are wondering what this means for the Toronto Condo market and are we in a condo bubble ready to pop?

Undoubtedly Toronto Condos make a smart Investment due to the following reasons –

  • Lending Institutions – Most of the Canadian banks has tighten up terms and conditions for lending than U.S. counterparts to ensure that the borrowers can truly afford their financial obligations. In the year 2006 and until June 2007 only 1 in 400 mortgages went into arrears in Toronto. It is interesting to note that the Interest rates remain low and are expected to decrease in the near future, keeping Toronto condos affordable.
  • Affordability – Majority of fresh buyers and young families are turning towards condos as the price of single detached homes continues to rise. In Feb 2008, the average selling price of a detached resale home in the central regions of downtown Toronto and North York was over $800,000. This price made it virtually impossible for first time and young buyers to become home owners in the core areas. It is said that Condos remain the most affordable ownership option for central urban living.
  • Diversified Labour Market – Toronto has diversified and stable employment market offering numerous jobs in finance, professional, insurance, scientific and technical services out numbering those in the manufacturing units. Toronto also has remarkable employment levels with unemployment levels at about 6.8% in 2007. This diversified and stable employment market is less vulnerable to widespread job loss than surrounding suburban cities.
  • Population Changes – Toronto being the capital of Canada is among the largest city having population of over 5 million residents in 2006 which is constantly growing and changing day by day. In 2007-2010 its population is expected to increase by an average of 1.9% annually creating a demand for new housing. This changing population is creating a demand for different types of housing. Households already exists are downsizing as the children of the baby boomers are leaving the home.

Hence Condos remain the most affordable ownership option for urban living. Recent demographic changes along with a growing population will continue to create a healthy demand for Toronto Condos. Number of construction companies has helped to fuel a condominium construction boom in “Greater Toronto Area” with the Toronto condo market.

 

 

 

Real Estate Market Toronto

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The real estate market in Toronto is still going already strong. The huge influx of quality immigrants coupled with the strong faith of the foreign investors is really helping the Canadian real estate market. As per the latest stats, Toronto real estate market is going at the rate of over 7% over the year which is by far one of the best markets not only in Canada but also in North America. The average selling price was $523,036 across the GTA, compared to $497,130 in 2012. Neighboring municipalities such as Vaughan, Markham, Mississauga, Brampton, Milton, Ajax, and Kitchener Waterloo area has also seen unprecedented growth in the recent years. Investors consider real estate market in Canada as one of the hottest investment trend and therefore a lot of money is being poured into this market. Some investors are even reporting as much as 20% growth over the year which is really healthy sign that the market is booming. Immigration is one of the biggest factors to drive this growth. Immigrants from countries such as China, India, Middle East, Mexico etc. are pouring in a lot of money from back home into the Canadian real estate market. Considering the overall trends now is the best time to buy property in the GTA. Contact us if you’re looking to invest or buy a home for yourself. We promise to help you secure the best property with the maximum return on investment.

Why Live in Toronto

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Why live in Toronto

Toronto is one of the best cities in the world to live in. Toronto is the largest city in Canada and the fourth most populous city in North America having a population of over 2.6 million people coming from various parts of the World. Toronto can be called a true Cosmopolitan city as it is one of the most popular immigration destinations of the world. Why Toronto is considered as one of the best cities to live in:

Economic Super Power: Toronto is an international center for business and finance having offices of all major International corporations and banks. The Toronto Stock Exchange is the world’s seventh-largest stock exchange by market capitalization which tell of it’s an economic superpower. The economy of the city is something to write about. Big companies, head offices, numerous law firms, atmospheres for trading etc all are present in the city.

Safety: Toronto despite being one of the largest cities in the world has one of the lowest recorded crimes. The city is also blessed with a population that is heterogeneous with diverse culture living together in peace. Since a lot of people travel into the city, they bring in a different culture but the most thrilling of all these is that although the city is heterogeneous, they all live together harmoniously.

Good Transportation: Toronto is well connected to all major world destinations via Air route. There are a number of municipal expressways and provincial highways that serve Toronto and the Greater Toronto Area.

Who would not like to live in a city with a favorable and stable climate? Of course, the weather comes with a cold winter and humid summer but natural disasters like earthquakes, tsunamis, hurricane, tornadoes etc are actually alien to those living in Toronto.