Toronto real estate board members reported the sale of 8,547 homes in November 2016. This result represented a 16.5% price increase compared to November 2015. The average price of a home was up approximately 22% compared to a year ago and now stands at $729, 849.
The talk of lack of inventory, increase in prices, strong demand and buyers frustrated by the lack of listings is old news. This is the marketplace that we've been familiar with for the last five years. What is new, is that prices have reached a level that many buyers are now starting to find difficult to qualify for a mortgage and to purchase. One example of this is that there were many condominiums available in the $350,000 ~ $450,000 range two months ago and now those condos have all pretty much disappeared. It’s difficult to find a decent 500 square foot condominium for $400,000 today.
Toronto real estate is particularly challenging for the first time home buyer + their ability to afford. The result? First time home buyers will have to go further away from the city in order to find the home that they're looking for, at a price they can afford.
Markets such as Barrie, Oshawa, Brock, Hamilton are a great place to invest or to buy a home. They all have nice mature communities relatively close to the city and the rents are similar to Toronto without the huge capital investment.
No, there's not going to be a downturn. No, the bubble will not burst ~ the demand is just too strong ~ but for those people who cannot afford Toronto prices, it's time to look a little further out.
The key is to have a full-time real estate professional like me who is knowledgeable and will work hard to get you what you're looking for. Whether it’s Toronto or the outskirts give me a call and I will put my expertise to work for you.
If you know of someone thinking of buying or selling or if you're looking for a great investment property give me a call ~ I'm never too busy for your referrals.
Have a great December!
Your Friend in Real Estate,
Suzana ( Sue ) Davies , Sales Representative Remax Realtron
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