With Canada’s national housing supply being at the lowest levels seen in 12 years according to the Canadian Real Estate Association (CREA) and home sales rising 0.6% nationally from October to November 2019 (for the ninth straight month of increases), it’s clear that the Canadian housing market is on fire. Nowhere is hotter than the Greater Toronto Area (GTA), which has the fastest population growth in all of Canada (and the U.S.!), according to a report by Ryerson University’s Centre for Urban Research and Land Development.
Forecast for New Homes and Condos for Sale in Toronto
Despite a slow 2018 and speculations about a housing bubble in the GTA, 2019 was a strong year for new homes and condos for sale in Toronto, and the trend shows signs of continuing throughout 2020. With low-interest rates, the recent introduction of the new First-Time Home Buyer Incentive, and buyers adjusting to the tighter mortgage rules, buyers are snapping up homes as fast as they’re being listed.
Homes in the GTA increased 4% in price throughout 2019 (from $835,422 to $880,841, according to RE/MAX), and the RE/MAX 2020 Housing Market Outlook predicts that prices will rise another 6% in 2020.
Factors Affecting the Housing Market
Toronto’s rapid population growth certainly has something to do with it, too. Toronto’s population grew by 0.94% in 2019 (or 57,000 new people), and the city is expecting to welcome even more new residents in 2020 as Canada’s immigration targets increase.
Newcomers to Canada account for over 20% of the housing market, according to the Finacial Post. This means that we can expect to see continued growth in the demand for new homes, townhomes and condos in the GTA, and we can expect prices to follow due to limited supply.
The Canada Mortgage and Housing Corporation (CMHC)’s 2020 Housing Market Outlook also predicts that income and population growth will support strong growth in home sales and prices.
A Distinctive Upward Trend
The Toronto real estate market is on a distinctive upward trend, making it a great time to hop in the market before it rises any higher, and to reap the benefits of a real estate investment. Buying real estate is one of the best ways to generate wealth and a solid return on your investment. An investment in Toronto real estate in 2020 will pay dividends. Learn more about new condos and townhomes for sale in Toronto by checking out BAZIS’ new communities.