Toronto Condo Market Report – Update and Forecast 2017 2018

Toronto Condo Market Report – Update and Forecast 2017 2018

Toronto Condo Market Forecast

While the Toronto housing market is overshadowed by severe house supply shortages and ultra-high prices the condo market in Toronto and Mississauga is an attractive alternative for young buyers. Sales of condos particularly in the under $500k market are rising.

With the new mortgage rules to be implemented in the new year, many buyers will qualify for a much lower mortgage. Not fair, but the government feels this is all it can do to remedy the housing crisis in Toronto and Vancouver.




You likely have your own opinions about government meddling in the markets, however such interference can be a housing crash factor in itself.

Should you invest in a new or resale Toronto condominium? The Canadian economic Forecast and Toronto economy in particular look very good. That means condos new and old will be in demand next spring from fully employed buyers who have had time to save the big downpayments and meet more stringent lending stress tests.

As mentioned in the Toronto housing report for October, prices for Toronto condos are up 24.5% in the city of Toronto year over year.  Some of this rise is due to the coming mortgage chages. If you need a monster mortgage, you need to get hopping and call a real estate agent.

The issue of whether to buy is one of affordability for Millennial-aged buyers and as many are saving, there will be plenty of demand next spring, putting upward pressure on prices.




Millennials Are Driving The Toronto Condo Market

They’ll need more creative mortgage financing and improved condo searches to find something they can afford. Although the mortgage changes in 2018 will put an extra burden on them, and force them to stay in the rental market, they will likely have more money in the spring to buy a condo.

There’s big investor demand for condos too. Student housing is in a severe crunch in Toronto and Vancouver. Investors are well aware of the rental potential of condos and many may be investing in the Vancouver condo market and here in Toronto because of so much rental demand.

If you can’t earn a profit on capital appreciation, you can still make it on rental income.




Toronto Rents Are About to Rise

A report from BNN shows how rental income properties, including condos in Toronto. See where the big rents are.

Why are Toronto Condos such a Draw?

Toronto Condos offer higher cap rates and a larger growing pool of potential renters and buyers. And at this point with severe shortages of detached houses and townhouses, buyers are buying condos. Barry Fenton, President & CEO of Lanterra Developments, a major condo developer suggested Toronto Condo prices could could have risen 40%. They have reached 20% over this time last year.  The detached housing shortage is still alive.

When foreign investors look to escape their own country’s currency nightmares and leverage our weak loonie, they like the Toronto market. Note: If you’re a foreign real estate investor, people often refer to Toronto as being the greater Toronto area encompassing Oakville, Mississauga, Vaughan, Richmond Hill, Scarborough, East York, Pickering and even out to Oshawa.




Toronto Condo Prices 2017

Toronto Condo Market Prices – Month to Month Change
GTA Community Toronto Condo Prices October 2017 Toronto Condo Prices Sept 2017 Toronto Condo Prices August 2017 Sept 2016 March 2012 Price Change over Last 13 months
City of Toronto $555,004.00 $554,069.00 $550,299.00 $561,376.00 $361,800.00 -1.15%
Toronto West $446,794.00 $450,485.00 $434,218.00 $487,061.00 $286,366.00 -9.01%
Toronto Central $620,322.00 $615,654.00 $615,680.00 $682,427.00 $422,396.00 -10.01%
Toronto East $407,775.00 $395,859.00 $403,028.00 $467,689.00 $237,909.00 -14.69%
Halton Region $478,611.00 $519,348.00 $528,579.00 $485,128.00 $442,625.00 -1.36%
Burlington $553,029.00 $514,755.00 $476,222.00 $497,800.00 $370,667.00 9.99%
Halton Hills $516,450.00 $294,500.00 $446,971.00 $381,017.00 26.22%
Milton $413,808.00 $418,219.00 $427,594.00 $406,300.00 1.81%
Oakville $419,438.00 $606,131.00 $523,507.00 $513,682.00 $485,800.00 -22.47%
Peel Region $389,587.00 $385,588.00 $395,188.00 $461,830.00 $433,780.00 -18.54%
Brampton $354,618.00 $336,091.00 $350,401.00 $374,596.00 $351,500.00 -5.63%
Mississauga $395,683.00 $393,441.00 $402,344.00 $485,240.00 $453,250.00 -22.63%
York Region $495,973.00 $481,138.00 $500,456.00 $544,528.00 $537,903.00 -9.79%
Aurora $608,750.00 $562,500.00 $685,874.00 $532,785.00 $525,000.00 12.48%
Markham $503,796.00 $486,369.00 $503,455.00 $554,643.00 $527,518.00 -10.09%
Newmarket $416,260.00 $444,250.00 $400,340.00 $496,125.00 -19.19%
Richmond Hill $452,319.00 $446,505.00 $470,076.00 $542,470.00 $596,667.00 -19.93%
Vaughan $532,144.00 $513,618.00 $521,400.00 $593,725.00 $554,211.00 -11.57%
Durham Region $399,687.00 $365,297.00 $376,250.00 $317,855.00 $274,350.00 20.47%
Ajax $337,317.00 $397,125.00 $379,431.00 $378,180.00 $281,688.00 -12.11%
Oshawa $302,333.00 $226,347.00 $315,075.00 $243,000.00 $210,667.00 19.63%
Pickering $448,036.00 $384,300.00 $402,316.00 $396,301.00 $340,667.00 11.55%
Whitby $448,036.00 $395,633.00 $457,143.00 $344,461.00 $294,350.00 23.12%

The Toronto Real Estate Board covers a huge area and below we’ll zero in on communities that may represent the best ones for you to research.

Barry Fenton, President & CEO at Lanterra Developments joins BNN to discuss the Toronto Condo market. He suggests the market is aggressively priced and complains a little about how competitive it is. He says prices will rise 40% but he has a few misgivings about the Toronto Condo market.




Big Demand for Condos as Entry Level Homes

Most home buyers in the Toronto area can only hope to own a condo. Homes are averaging over $1.5 million in some areas in the GTA. And condo developments are offering more for tenants. And perhaps the key feature of Toronto condos is their proximity to work, leisure, restaurants and shopping and freedom from the grinding commute that many Torontonians face each day. So there are good reasons to buy a condo in Toronto.

But the condo investment landscape has recently been darkened by Ontario premier Kathleen Wynne. Her government’s new foreign buyer tax might hit the condo market the hardest, but most credible experts expect demand to return. It’s a short term blip. Oddly, the condo market in Toronto is much less volatile than the single housing and townhouse market in Toronto. Her foreign buyer tax and rental price controls look like they’ll miss the mark.




Lets’ take a look at the most recent Toronto condo market prices and then look onward to 2018, 2018, 2019 and 2020. This blurb from the latest TREB condo market report says it all about what’s happening right now in April of 2017:

 

What else is supporting condo sales is proximity to work. Commute times are awful, gas prices are very high, and young millennials are having trouble handling rent/mortgage/ and car payments. Something has to give, so workers are choosing to move into the city near their jobs.

Where are Toronto’s Best Investment Condos?

As the graphic above shows, the top location is Toronto Central (where home prices are highest too), Toronto West and Mississauga. The bulk of these listings are in huge mega-sized condo towers and there are more of them being built. Toronto Central is also close to the U of T, Ryerson, and other colleges where off campus housing is in hot demand. It’s the same situation for Vancouver condo rental and investors should take note.




Toronto’s C02 district is your million dollar listing area. With an average price of $1,050,000 these are your Toronto luxury condos. This area is located just north of Downtown/Bloor st, near the University of Toronto. This suggests that proximity to U of T and downtown offices may be the primer driver of Toronto condo prices and may drive sales of Toronto homes as well.

Screen cap courtesy of the Toronto Real Estate Board. See more at trebhome.com

How Much Have Prices Risen in the Last 5 Years?






Should I Buy a Condo in Toronto?

Should you buy a condo in Toronto, Mississauga, Scarborough, or Brampton?  Demand for condo purchases is rising, the Toronto economy is strong and positive, and rents are rising fast.  At some point, you have to jump in, or you’ll never build homeowner equity.

What to Consider Before you Buy a Condo

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