If you are currently trying to negotiate the Ontario real estate market you need to find a realtor in Toronto who has the experience and expertise to help you get the best value for your investment. This is not an easy task given that real estate prices in Toronto continue to increase apace.
This has been the case over the last fifteen years, with areas such as Greenwood-Coxwell experiencing a 327% rice in real estate prices since 2001. The boom has been apparent across Canada’s large cities; you may have seen the recent headlines about ownership anonymity in British Columbia and how much this is contributing. So, what is happening that may stop the tide and how imminent is the real estate precipice?
The influence of foreign investment
Over recent years there has been a growing perception that an increase in foreign investment in Canadian real estate has been a major contributing factor in the pricing hikes that have seen some first time buyers being put at risk of being priced out of the market.
The figures that could support this theory are somewhat sketchy. The recent news about real estate anonymity has shown how easy it is to conceal actual ownership. This can make it difficult to ascertain foreign interest in a property.
That being said, a recent initiative in British Columbia does seem to have had some impact. Since the instigation of a 15% tax on foreign real estate investment, prices in the province have dipped, especially in the most expensive area, Vancouver West.
The impact of mortgage changes
One of the biggest changes that is likely to have an impact across the country is the implementation of stricter rules and checks around mortgages that have government backed default insurance. Early indications are that this will have a significant impact on first time buyers, with around 25% to 50% being completely shut out of the market.
This is especially likely to happen in large urban areas like Toronto. It’s uncertain how big an impact this will have on the Toronto real estate market. It’s quite possible that the dip in demand will not be great enough to dent the growth in real estate prices. For first time buyers the situation looks as though it may be becoming more difficult, at least in the short term. This is why many first time buyers are clamouring to find a real estate agent while there is still some chance of securing a property.
So where is the precipice then?
The fact is that even a cursory glance at MLS listings today shows that real estate prices continue to rise in many areas. It’s vital to find a realtor in Toronto who knows the markets in order to get the best out of any real estate deal.
If you take a look at some of the areas in Toronto that have seen the biggest real estate price growth in the last fifteen years the figures are eye popping.
- Woodbine-Lumsden – average price rose from $184,377 to $764,748.
- Greenwood-Coxwell – average price rose from $190,766 to $813,697.
- Andrew-Windfields – average price rose from $569,448 to $2,202,431.
- Wychwood – average price rose from $287,949 to $1,111,963.
- Banbury-Don Mills – average price rose from $340,006 to $1,242,747.
You can see from these figures how important it is to find the best real estate search in Canada if you want to find an affordable property in an MLS listing. It can be a difficult task so you need all of the advice and expertise you can get.
If you are selling a property this may all seem like good news but you should never be complacent. For every boom there is a burst and this will happen in the Canadian real estate market at some point. The precipice is there but it’s difficult to predict how close it is. For everyone involved in the real estate market in Toronto it’s about using knowledge and experience to make sure of getting the best deal at the best time.