With 2017 being one of the craziest years on record for the Toronto Real Estate market, we want to breakdown our projections for the upcoming year & what you can expect to see happen!
The rental market remains one of the hottest topics when talking about real estate in Toronto & for good reason! Last year we saw an unprecedented increase in rental prices and a drastic drop in available units with 2018 not looking like it's going to be much different.
We are seeing far fewer rental units come through the MLS system as landlords opt to rent the property themselves through sites like Kijiji & Craigslist as they don't need to pay a Realtor any commission if they do it this way. As a result, we have fewer stats to track what is really going on with the rental market, but from what we do have available, we can see that units listed have gone down 4% while prices have increased 6-12%!
The condo market will continue to be a seller's paradise with an increasing amount of buyers entering or continuing their property search. Due to the rising prices of entry-level semi & detached homes over the past couple of years, we have seen more first-time buyers decide to purchase a condo (this also comes in conjunction with the increasing rental prices/decreasing available inventory). In addition, we are also seeing more domestic investors come into this sector due to the high returns on rental value & property appreciation!
While there will be several large new construction condo projects being released this year (Tridel's AquaVista, Great Gulf's Monde/Yonge & Rich, Menkes Harbour Plaza + More), it isn't looking like many properties will come into the resale market as they will typically be owner or tenant occupied right away.
We do expect to see quite a few new construction projects released this year, so be sure to sign up for our Monthly Newsletter to stay updated on any new buildings coming out!
As the condo market has drastically increased over the past year, we have seen an overall correction/stabilization of the housing market with more inventory/days on market for the average property. This trend looks as if it will continue in 2018 for several reasons, but the main driving forces are:
The aging demographic of baby-boomers who will be downsizing/passing away in specific neighbourhoods
A shift in lifestyle choice for returning buyers who now put a premium on a "Downtown" style of living vs. the conventional semi/detached home
General reduction in the luxury homes market as many investors now see condos as the best long & short-term purchase
While it's impossible to say for certain where exactly the Toronto Real Estate market is heading in 2018, it's almost guaranteed that it will be an exciting one to pay attention to as we shift to a more "New York" style of living & investment!
Let us know in the comments what you think is going to happen with the real estate market in 2018!
Rylie C aka The OneWheel Realtor