One should be careful when comparing sales figures when it comes to real estate sales. Reason I am writing about this is because I myself have been caught listening to all the news sources about Toronto’s housing market. Over the last approximately six months people have been very worried about the sudden drop in property sales as well as prices falling, mainly due to changes to the rules of obtaining a mortgage. However, after reading this article I quickly realized that we sometimes get caught up with what TV, radio stations and newspapers are saying, because as we all know, negatives news sells!
In saying this, the article was quick to point out that if you actually look at the average property sales since the year 2000, especially condos, and compare them to last month’s sales for October, October condo and home sales were actually higher than the long term average! Most people are not aware of this because 99% of the news stories regarding the Toronto housing market use comparisons from the year 2011. Yet, we forget that 2011 was a record year for home sales.
Therefore, the public shouldn’t be so worried about the Toronto housing market. Sure, the new mortgage rules most likely did have an effect on new purchases; sure people are getting worried and waiting for the bubble to burst; but when all is said and done, it is as what most experts are predicting, a correction in the housing market.
As a result, we won’t be seeing another record year in home sales, nor sky rocketing home prices. It looks like we are just finally going back to our normal growth rate of home sales… but don’t worry, growth and price increases will be continue to be there. This I predict because Toronto is a booming economy, with over two hundred thousand people moving to the GTA every year.
Just how expensive—or not—is it to buy a condo in Toronto? The city sits at No. 15 out of 94 on the Global Property Guide’s ranking of the World’s Most Expensive Cities, based on average U.S.-dollar prices per square foot of centrally located condominiums (assuming a 550 square feet—one-bedroom unit):
Price in Toronto: $385,000
CHEAP compared to…
Hong Kong $839,000
New York $615,000
Thus, investors and home buyers should be weary as always when purchasing a home, as it is a major investment, however, they shouldn’t turn away. Toronto is a great city to live in AND invest in real estate, and if you would like to know more about this fantastic market, don’t hesitate to contact me! Tyler Soulliere (email@example.com).