Toronto’s real estate market is in the throes of major fluctuations in recent times. In fact, the spring market has not been as rocking for the housing market in the city as initially expected and there are several reasons behind the same. Toronto and much of the GTA (Greater Toronto Area) has been the hero (almost Marvel-esque) for the Canadian real estate market for a long time now as Vancouver plunged into a slump of epic proportions over the last 2-3 years. However, markets in the GTA have been affected by the mortgage stress test which TREB (Toronto Real Estate Board) and others have called out as overtly imposing on first-time homebuyers and the increase in rates of interest.
Yet, there remains hope on the horizon as it does for every superhero on the block! Toronto is expected to benefit from increased housing options for first-time homebuyers due to Government initiatives and a slew of new infrastructural projects that could boost the housing market in turn. Additionally, Toronto is poised to keep witnessing housing demand over the next few years on account of its flourishing commercial and office markets and the influx of several MNCs and top corporates into the city. It is steadily becoming a major technology and start-up hub from a global perspective and this will keep professionals migrating to the city. The growth in population will also add to this, thereby sparking rapid demand for housing, something that supply levels will have to match going forward in order to arrive towards a more balanced market in terms of prices.
Are sales increasing for newly built units in Toronto?
As per recent reports, sales figures are going up for newly constructed housing units in Toronto with several options being provided by builders and also competitive price points for homes in the city.
Here’s taking a look at all the key points in this regard:
- BILD (Building and Land Development Association) has released reports which state that developers are evolving rapidly in the GTA (Greater Toronto Area).
- They are offering moderate prices for housing units by offering newly built units at lower rates.
- This has led to sales volumes rising above the low levels seen last year.
- Newly built homes have seen a sales increase of more than 20% (year on year) for March 2019.
- Prices came down by 7.6% for the single family housing unit segment which covers semi-detached, detached and town homes as compared to March last year.
- Sales volumes however increased by almost a whopping 200% with 886 units sold as compared to 311 units sold last year.
- Benchmark pricing for these homes stood at $1.117 million for March 2019 as compared to $1.207 million in the same period last year.
- Prices for condos went up by 5% or roughly $38,000 to touch benchmark levels of $780,839. Sales volumes came down by 13% (year on year).
- Affordability and supply levels continue to be pressing areas for the housing market in Toronto even though recent sales growth should delight developers.
Sales figures of 2,314 units across single family homes and condos indicated sales growth of 20% as compared to 1,960 units retailed in March last year. However, the sales figures for single family homes were lower than the overall average for 10 years by 38%. However, growth has been observed on a year on year basis for 5 months in succession in this category.
The real estate sector is adapting swiftly towards market demand by offering newly built low rise and mid rise apartments along with row houses and stacked town homes which are more affordable and attractive to buyers. These are enabling more first-time homebuyers to enter the Toronto housing market at comparatively affordable price points. In fact, the authorities are now evaluating the overall increase in neighbourhoods across Toronto with higher densities and also affordability levels for housing units in varied categories.
It suffices to say that real estate developers and the industry at large is responding positively and pro-actively towards evolving market needs, particularly in case of first-time homebuyers. As a result, these new units are being tailored in a way so as to make them more attractive and comparatively lighter on the pocket. Now isn’t that a winning combination? Naturally it’s leading to sales increases for the GTA (Greater Toronto Area), something that developers hope to see in the coming months as well.