For many Canadians, there is some optimism about how much longer the Toronto housing market will maintain its high home prices as the Vancouver markets has already begun to cool down. Industry experts are also having a watchful eye on the Toronto market.
With the year about to come to a close, experts are awaiting what will unfold in the hosuing market as intense attributes might pop up at any given time.
According to real estate agent Manu Singh, he had recently put up a property for sale in the well know King West neighborhood and was not quite expecting a rush from buyers but since the venue at the intersection of King and Bathurst Street was attractive he made a date to assess offers for a week later and was very amazed as 18 investors book for an appointment. Within two days, the property was sold.
In the past weeks also, properties were being sold at a very fast rate and this is comes to a surprise.
An even though everyone was talking about the cranes in the downtown landscape, builders are finding it hard to meet up to the demands of buyers in the first three stage of the year.
Records in Toronto show that there was a 22% increase in condo sales while a 13% drop in home listing. There was also a 9.6% increase in the average home price.
These figures boost many to go in for condos instead of single family units.
But amid the high demand for condos, there is an inadequacy in the supply in the rental market and now renters are even offering more than the amount offered in the listing. Some renters even go to the extent of offering 6 to 8 months upfront payment.
This comes as good news to landlords as they face less risk with renters not paying up their rents.
But experts are worried that Toronto will soon experience a decrease in prices but will new laws being implemented aimed at cooling down the market prices, many are expecting that the effects of the regulations will be felt in the coming year.
With the housing market having high prices, the Canadian economy have become dependent on the housing boom for the recent years as housing transactions account for 7.7% of GDP. But a slight change in the housing market will definitely affect the economy.
And as the hot Vancouver market is showing signs of cooling off, it is expected that the Toronto market at some point will mostly go through a similar transition.