Experts have indicated Canada will need to build millions more homes in the next 10 years to meet our growing needs. To the casual observer the problem is easy to solve: just build more homes. For those in the real estate development field, the problem is much more complicated than this.
Toronto's house prices are likely to continue their upward trajectory this year due to a supply crunch, pushing potential homebuyers to go for more affordable options, according to the latest market outlook by the Toronto Regional Real Estate Board (TRREB).
The overall average selling price in the region is expected to jump by 10% to $900,000 this year. TRREB said there is a high chance that the prices will keep inflating given the limited growth in new listings.
"The end result will be an acceleration in price growth over the next year, as an increasing number of homebuyers compete for a pool of listings that could be the same size or smaller than in 2019," TRREB said.
Also read: Toronto condo apartment sales gained at the end of 2019
Home sales are slated to increase by 10% this year, hitting 97,000 from the 87,825 reported last year. This growth will be driven by the demand for condominiums, apartments, and higher density low-rise segments like semi-detached homes and townhouses.
"These home types are more affordable, on average, and will remain popular as the mortgage stress test, although under review by the federal government, appears to be remaining in place for the foreseeable future," TRREB said.
The stress test has influenced the options of would-be homebuyers in the region in terms of price, dwelling type, and location. TRREB said while the detached house used to be the most popular type of home, the share of intending buyers who ended up seeking for such dropped from 54% in 2015 to 42% last year.
"This decline was evident both in the City of Toronto and surrounding regions. An increase in buying intentions for condominium apartments and semi-detached homes has accounted for the dip in detached buying intentions," TRREB said.
While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.
Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.
This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.
For Real Estate News and Market Updates & VIP Access to Exclusive Real Estate Investment Opportunities
Canadian Real Estate Wealth Media Corp. needs the contact information you provide to us to contact you with news and market updates and to share real estate investment opportunities. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, please review our Privacy Policy.
Diversity, equity and inclusion, better known by the acronym DEI, are buzzwords that permeate the workplace these days.
Ontario's construction sector will need to recruit about 71,800 new workers over the next six years to keep pace with retirements in the industry.
While markets across the country are seeing price corrections amid rising interest rates, Calgary has held strong.
The Bank of Canada announced yet another interest rate hike at its meeting on Thursday.
CREW has compiled a group of investment real estate agents that we think stand out for their quality service and dedication to the world of real estate investing.
“Sign up for our daily newsletter to get the latest news, updates and offers delivered directly to your inbox.”