While news headlines show dramatic changes in market conditions from 2016 to 2017, if one looks deeper, the picture is much more stable than would first appear. It’s important to note that 2015 and 2016 were not typical years. With an almost frantic pace fueled by low inventory, buyers scrambled to buy, resulting in bidding wars and a huge upswing in sales numbers. The activity seen in those two years make the return to more normal conditions in 2017 and 2018 appear much more dramatic than they actually are.
According to this recent Globe and Mail article, the Toronto Condo Market remains strong, proving a viable alternative to single detached homes. Buyers are feeling the crunch in affordability due to recent changes with mortgage rules and rates, and the addition of Ontario’s Fair Housing Plan, and are opening up to the possibility of living in a Condo that’s priced within their means.
While sales in single-family homes are showing a decrease from 2016, multi-family residential is seeing a boost. In 2017, Altus reports that builders sold 36,429 new units last year, “smashing” the prior sales record in 2016, when 29,132 condos were sold. This further illustrates the shift towards a more affordable multi-family home.
TREB is also reporting that the average price climbed to $515,816 in 2017 over $437,412 in 2016, and is reporting a consistent 23 days on market average. As well, in the City of Toronto, the average sales price / listing price comparable in the last quarter of 2017 was at 99%. (Ratio of the average selling price to the average listing price for firm transactions entered into TREB MLS).
In new building, BILD reports that the market at the end of 2017 was largely driven by multi-family residences, primarily due to changes in government intensification policy and challenges builders face in bringing single family homes to market. This indicates a growing interest in multi-family residences and continued strengths in price and sales rates.
Finally, investors have always taken advantage of closings typically 2-3 years away in new Toronto Condo developments. Now is a good time to buy in anticipation of housing sales catching up from the recent government changes by 2020 or later.
Looking at sales over the past few decades, one can see overall upward trend, and for those looking to maintain a long-term approach to real estate investment, new condos show strength, as inventory is expected to continue to tighten in future, and increase demand.
If you’re considering a new condo, there are many factors to consider. Talking with your lender and taking a long-term approach means you can buy now.
The New Year is close at hand, and everyone is running around getting ready for the holidays, preparing delicious meals and making plans to ring in 2018. This week, BAZIS looks back at 2017 and the year that was, in our annual year-end review.
Starting with the single unique building in all of Toronto, construction of Exhibit, drew to a close and is now entirely sold out. A prime example of the elegance, style and luxury you’ve come to expect. With an abundance of amenities and forever protected views of the city, our Exhibit condo offers a refreshing and eye-popping addition to the Toronto skyline.
The construction of the Eglinton LRT project hasn’t impeded our progress on eCondos. The project is well underway as development continues at a steady pace, as the skeletons should be complete by mid-2018. The beginnings of the cantilevered pool are now visible from the street below. Once completed, the main lobby will offer full access to the subway and be steps away from the Yonge & Eglinton shopping centre across the street!
Now under construction in Toronto’s high-end Yorkville neighbourhood, is the unparalleled 1 Yorkville. The foundation and underground are complete with progress making its way up to the 15th floor. Keep following us throughout 2018 as we explore all the incredible shopping and dining options available to you in and around the Yorkville area.
At Emerald Park, we’ve fully-realised our vision of this extraordinary addition to the Yonge St. skyline. These two sparkling emerald towers are beautiful! While our condos are fully sold out, there are still commercial spaces available. With the underground access and proximity to the subway and access to shops, plus location on Yonge St. & Sheppard Ave., it’s a first-choice location.
Finally, Thank you to all our followers for making 2017 one of our most successful years and continuing to follow us on social media. Keep following in 2018 as BAZIS continues to showcase our upcoming projects, construction updates, and happenings across this glorious city we call home.
Happy 2018 Toronto!
The change of seasons brings with it a new forecast for market trends in both real estate and design.
At the beginning of the summer, both the Toronto Real Estate Board (TREB) and Canadian Real Estate Association (CREA) released their forecast for the fall housing market indicating a favourable outlook for condos. TREB reports indicated a decline in home sales overall, but the smallest decline came in the form of condo sales. As well TREB’s benchmark index showed an increase in condo prices versus those of detached homes. It appears that more Toronto residents are turning to condos as the lack of affordable single-family homes in the city continues.
The demand is not only for condo dwellings but larger ones as well. An increase in the sale of two and three-bedroom condos and two-bedrooms with dens further highlight the fact that Toronto residents are increasingly turning to condo suites as family homes. The demand for larger condos is also likely to continue to increase well into the end of 2017. According to Urbanation, the authority on GTA’s new condo market, demand outpaced supply in the new condo market as of the end of June 2017.
While the mercury may be dropping the condo market remains hot.
There are also a number hot new interior design trends we see coming this fall. Mirrored coffee tables reflect what is currently trending; chic and subtle tables that work well in both traditional and contemporary spaces. Mirrored tables work nicely with the shades of French blue that a classic, if not romantic, touch to walls, furniture and accessories.
A counter-balance to French classic is what House and Home Magazine refers to as Nomadic Modern; a combination of bohemian chic with tribal and exotic elements using mixed patterns, colour palettes and materials for a fun and trendy look.
Still popular in interiors is upscale country creating elegance with grey-brown wash on walls and rustic elements.
Trending in kitchens are open-ended islands which offer display and storage nooks along with runner effects, caused by interrupted floors; a look where the transition of flooring styles between rooms appear to melt into one another.
Finally, we are seeing the use of penny round tiles in flooring and bathroom walls replacing the subway tiles that have been trending for the last little while.
As we near Canada’s 150th birthday, the red of our national flag may be shining a little brighter from blushing so hard as the world takes note of just home amazing Canada is.
For the second year in a row, our Home and Native Land took the #2 spot in the annual “Best Countries” survey conducted by the U.S. News & World Report, in conjunction with Young & Rubicam BAV Consulting and the Wharton School of the University of Pennsylvania.
The Great White North also led the pack with a #1 worldwide ranking in the “Quality of Life” category thanks to perfect marks in areas such as healthcare, politics and the economy.
To top it off, world renowned travel guide Lonely Planet also made Canada their #1 choice for travellers in 2017.
With so much recognition around the world, it’s not hard to see why so many people see Canada as a great place to live and invest.
From our stable politics and regulated banking industry to our spot on the global markets as a significant exporter of energy, minerals and food, Canada is seen as a safe haven to live, bank and invest in by buyers from abroad.
Here are a few of the reasons why Canada Continues to be a great place to invest in real estate:
Continued Increasing Real Estate Values
House prices rose by a record 2.2% across Canada in May, compared to April according to Teranet, with Toronto leading with a 3.6% increase.
This was the largest May gain in the index’s 19-year history, hitting another record high for the 16th month in a row.
Across Canada, prices were up 13.9% over May 2016, nearly reaching the record annual increase of 14.1% set back in September 2006.
Continued Low-Interest Rates
For the past decade, Canada has enjoyed a period of historically low-interest rates. And while the days of minus prime mortgages are gone, many Canadians are still enjoying low rates that have made investing in real estate that much easier.
Strong Rental Markets
As hot as Canada’s real estate market has been, the rental market has also continued to show strong legs.
According to the CMHC, a higher number of rental apartment units were occupied in in a year over year comparison “primarily due to much higher international migration to Canada and the continued ageing of the Canadian population”.
In fact, rental housing demand was up in most areas across Canada. Over the past year, demand for rentals in Ontario, in particular, grew with vacancy rates in Toronto around 1.5%, which was bolstered by higher immigration and fewer renters making the leap to homeownership.
Strong job growth across Canada and the desire to live in the GTA has also pushed rental prices to new heights. Recently, the Toronto rental market hit a new milestone as the rent on an average 700 square foot condo broke the $2,000 mark, and renters entering into bidding wars over high demand buildings.
With prices rising and affordability a factor in the sizzling GTA real estate market, condos and apartments are becoming more and more popular as alternatives to homeownership. This, in turn, is providing upwards pressure on rental rates as the demand for condos and rental apartments steadily increases.