Toronto Real Estate prices keep going up and have hit an all-time high this past year despite a worldwide pandemic. In Toronto, it shows an average house price of $1,120,558. In the city of Toronto specifically, detached home prices are up 36.8% year over year, and are now approx. $ 1,699,756. Why do Toronto Real Estate prices keep going up?
For many young adults and first-time home buyers, it is looking more and more unattainable to buy a home in Toronto. Toronto Real Estate prices keep going up mainly due to immigration, supply, and demand. Toronto is one of the most multicultural cities in the world and with events, sports, and live entertainment the city offers, Toronto is seen around the world as a first-class city to live in.
Canada is a leading country in immigration and a large number of immigrants choose to settle in Toronto. Toronto welcomes over 100,000 new immigrants every year and has a reputation for being one of the world’s most multicultural cities. Skilled immigration plays a crucial role in the demand for Real Estate in Toronto. Known for its diversity, Toronto also is a leading economic hub and provides many job opportunities to immigrants.
Toronto is the most populous city in Canada with nearly half of its residents being immigrants. The GTA alone took in 118,000 immigrants last year. This upcoming year Canada is set to welcome 401,000 immigrants, with a large number to settle within the GTA. As we continue to welcome such large numbers of skilled immigrants adding to our population, the addition of housing is a very important necessity. As demand for Real Estate continues to rise, so will the prices.
Supply and Demand
Toronto only has so much land and it can lead to a shortage of homes and an increase in prices. With so little land left in the city to build, the GTA has grown extensively. Toronto was recently named in the top 10 of the most expensive cities regarding housing and rental costs. In the 2020 Annual Housing Affordability Survey, Toronto ranks number six and has moved up four spots since the previous survey.
Low-interest rates have attracted more buyers this past year increasing the demand for housing. As inventory remains low, competition in the area increases and drives up the price for homes. Once one house sells, that will set a standard for the area and similar homes will sell for more in an increasing market like Toronto. As long as demand continues to increase with little inventory prices will continue to rise.
Due to the current intense demand for homes, Toronto Real Estate prices keep going up and many properties result in multiple offer situations. It is such a competitive market in Toronto that you need to ensure that you are working with the right Real Estate partner who can navigate your sale, and have a pre-approval put in place before you begin house hunting.
Location & Convenience
Many residents in Toronto are willing to pay for convenience and location. Toronto is constantly improving and growing, with new offices being built for Google, Netflix, Shopify, and more. There are over 200,000 tech and internet-related jobs within the city. Also, Toronto has leading educational institutions that attract thousands of students from all over the world every single year.
The University of Toronto itself welcomed over 23,000 international students alone in the 2019-2020 academic year. That added convenience of being close to school or work can be worth the extra costs of downtown living. Being close to transit lines will allow you to not spend money on a vehicle and parking which can rack up quickly. In such a competitive market like Toronto, things like transit and location can increase the selling price of your property.
Real Estate is one of the best investments your money can buy. Investors are taking advantage of the historically currently low-interest rates and purchasing homes as an investment property. As the Toronto Real Estate market grows an average of 5% per year, Real Estate in Toronto has become a popular long-term investment opportunity. Canada has an unprecedented rate of homeownership of 68.55%, and with the prices continuing to rise I personally see that dropping even more within the next 20 years. The best time to buy was yesterday, and today is better than tomorrow! Take advantage of our homes for sale in Toronto under $990K. For more information on buying in Toronto, book a call with us today!