According to the Canadian Real Estate Association, 2017 may be the year for a cooling off of the Canadian real estate market. So will Toronto real estate really see price growth slow? Indications are that market growth is stabilizing but in major markets like Toronto real estate the situation remains unclear. Carry out an MLS listing search for the city and you will see that prices are currently still buoyant.
There are some factors which seem to support the argument that growth is likely to slow. These include the fact that many people have significantly high mortgages in a fairly static employment environment. Individual consumer debt is also high throughout Canada. That being said, the Toronto economy is still thriving and GDP is forecast to remain steady. It seems as though it may be a little too soon to be definitively about predicting a drop in prices of houses for sale in Toronto. So what predictions can we make for the coming year? Here are some of the things which you are likely to see happening in Toronto real estate for 2017 and beyond.
1. Housing affordability issues to continue
The affordability of housing is one area where there remains a lot of concern. There is still high demand at the top end of the market, especially when you place foreign investment into the mix. This has an effect on the entire market and many first tome buyers are being priced out of getting onto the property ladder. Even if price growth slows there is still likely to be an issue with affordability, especially for those who are investing in property for the first time.
2. Toronto market to remain strong
As we have already mentioned, the Toronto economy remains strong. Currently, it’s difficult to predict any slowing down in growth in the coming months. Even if this does happen the market seems likely to remain strong. If you are looking to make a real estate purchase in Toronto during 2017 you should find a real estate agent in Toronto who has the experience and expertise to help you negotiate the market and get the best deal.
3. Condominium demand to inspire new construction
The high-end of the real estate market continues to attract investment from within Canada and abroad. Currently, there is an issue with supply and demand. Conducting a real estate search shows that there are fewer condominiums available at the top end of the market.
If demand continues at current rates it seems likely that new construction will follow. If you live in Toronto you could well see an increase in the building of new high-rise developments, in 2017 and beyond.
Of course, this does not help people looking for single family occupation houses. This area of the market is not where interest in development is likely to be.
4. Invest to let to be a solid market area
We have already discussed the issues of affordability in the Toronto housing market. It can be very difficult for first-time buyers and families to find a property they can afford to purchase. This is where the invest to let market comes into its own.
If you are thinking of investing in real estate in Toronto you may well want to consider choosing a property that affords good rental potential. There are opportunities to buy properties which are suitable for multi-family occupancy. At a time when families are often unable to purchase a property, they are entering the rental market. For this reason, purchasing a property to rent gives you significant earning potential.
5. Urban multi-use developments to grow
There is no doubt that more and more people are relocating to urban areas. Often these are people who are career orientated. This does not mean that they do not want to maximize the potential of their lives outside of the working environment.
In order to do this effectively, urban dwellers are looking to live in communities where they have access to all of the facilities required for living on a day to day basis. They do not want to have to spend too much of their valuable time traveling to work, shop or socialize.
This is why multi-use urban developments are growing in popularity. It’s not just about creating a high quality residential real estate anymore. It’s also about creating an environment where those people who are living in this real estate are residing in close proximity to their workplace as well as shops, bars, and restaurants.
Over the last fifteen years, real estate prices across Canada have grown at an eye-popping rate. As a large urban area, Toronto has been home to some of the biggest price hikes around. Take a look at an MLS listing in Toronto and you can see just how strong property prices still are.
As we mentioned earlier in this article, many experts are predicting a slowing down of growth during 2017. That being said, it’s difficult to tell for certain exactly what the Toronto real estate market will look like at this time next year, except that it seems certain to hold on to most of its strength for the foreseeable future.
There are potential stumbling blocks, such as affordability, debt, and static employment figures. But Toronto’s GDP remains healthy and there is still sustained interest at the top end of the real estate market. One of the biggest challenges is going to be meeting the demand for condominiums in the city. As we discussed, new condominium homes are likely to be joined by associated real estate, to meet the demands of the urban dweller’s hectic lifestyle.