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Toronto Real Estate Market Still Secure – Lower Price Range Wakes Up

What if I were to tell you that the real estate market has woken up – particularly in the lower price range?

With the new mortgage rules and qualifying stress test, many buyers have been pushed down to a lower budget than perhaps they would have in previous years. This has added more buyers in the $550K market and under while the amount of listings has not grown. So like anything, low supply and high demand are pushing activity level and prices!

In the higher price points, there is also a slower, but still growing market that I predict will wake up closer to the spring when those that were frightened off last year’s speculations will forge ahead with their plans to make a move.

Please Also Read: Real Estate Is Still Your Best Asset..

The Toronto hot spot is the downtown condo market. While January sales are 19 percent lower than in 2017, new listings are also lower by 18 percent. When you compare the sale numbers to January of 2016 and 2015, sales were 4 percent lower in 2016 but 13 percent higher than in 2015. At the same time, new listings are lower than 2016 and 2015 by 29 percent and 27 percent. This lack of supply has raised the median price of a downtown condo to $560,000 this January from $494,000 last year.

There are plenty of buyers waiting for new listings to enter the market. Sellers just need help in pricing their property.

The “Sweet Spot” in the GTA will be properties located in the Toronto area between $500,000 and One Million. There is a shortage of listings in this market area and most millennials want to live there and can afford these prices. There will be an excess of listings in the surrounding suburb areas in the over $1.5M range and this will negatively impact prices.

The Toronto Real Estate market will continue to be driven by the influx of people to the GTA (over 100,000 per year) and the continued economic growth of the city as a major international centre.

 

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