In the past few years, a mixture of inflation, strong demand from new buyers, and a lack of public infrastructure developments have pushed real estate prices in Toronto, and particularly in the York area, to staggering new heights.
In this first table issued by the Toronto Real Estate Board, we find a list of the average prices of homes in the City of Toronto, the general 905 area, and the rest of the GTA. Interestingly we can see a massive yearly increase in the average price. For example, the average price of a home in the GTA rose from 574,424 dollars to 627,395, which amounts to about a 9% increase.
At this point, if you are one fortunate enough to own real estate, be it a condo or a house, then you have a foothold for the future. If not, unfortunately, the only hypothesis that can be made at the moment is that the prices are expected to increase dramatically.
This overwhelming increase in prices has and will affect all of your future real estate decisions.
If we assume you are a typical Canadian family in the Toronto area, you would earn roughly $78,000 a year. The median price of a house at this moment is roughly $700,000 and requires a mortgage payment of over $3000 a month. That requires a minimum income of $128,000. In truth, you may be priced out of the housing market. But that doesn't mean you can't own a home.
We can shift and discuss condos, we find that during the past couple of years alone, condos in the city went up by 15%.
This graph demonstrates the inflation of prices for housing in Toronto over the years. Insane – isn’t it?
Nevertheless, it is crucial to note that despite the uniform rise in prices for all real estate, condos in general remain lower in value than houses, and particularly, condos on average cost around 500 – 600 thousand dollars.
Hence, if your budget is around the numbers mentioned, it is clear your best bet would be to buy a condo in the York area/Toronto. According to theglobeandmail, the price gap between condos and houses soared 50 percent last year in the Greater Toronto Area as values of single-family homes skyrocketed, while the condo market flat-lined. In addition, in 2015 the averages for condo prices in the area was around 500,000 dollars, and that was more than a year ago.
Therefore, it is safe to say with housing markets quickly becoming out priced from the typical Canadian, a new investment area is going to rapidly thrive. As more Canadians shift their behavior the safe investment in a charming condo will become even more lucrative as the 9% increase established earlier would continue to rise, ensuring your financial future.