Taking a Closer Look at the Growing Real Estate Prices in Toronto
Unfortunately, rapidly growing real estate prices are happening throughout Canada and the rest of North America, but how does Toronto stack up against the rest? Given Toronto’s real estate market has been climbing for the last decade, has the rest of Canada simply caught up or is Real Estate in Toronto still at a premium compared to similar offerings?
Buyers and sellers alike, keep reading if you are looking to get a better insight as to what might be the next right moves to ensure you’re getting the best deal for yourself and your property in Toronto.
How Is Growth Playing A Part?
The population increasing or decreasing is going to play a massive part in the cost of housing for any major city. So what has it looked like in Toronto over the past decade? Well, the story behind the rising costs starts to come together when looking at the fact that Toronto seems to have strong immigration year after year.
Obviously, everyone moving there needs somewhere to live, therefore increasing the demand and cost of homes as residents are moving in at a faster rate than homes are being built. To understand it’s growth, realize that it’s not simply the fastest growing area in Ontario, it’s growth is drastically outpacing many similar cities throughout North America.
New Housing
As mentioned, there are more people moving to Toronto than there are houses being built, but that does that look like in greater detail? Looking back to 2018, there were over 75,000 new residents moving to the city but only 35,000 new homes were built. Now, that’s directly in Toronto. That year, the number of those moving to the GTA (Greater Toronto Area) were well over 120,000.
Mind you, those are slightly dated numbers and the supply chain issues alone throughout the past few years have only made the production of new homes even slower. Those numbers, from 2018, might seem hard to swallow out of context but those were the issues Toronto was having prior to the market shake up of 2020.
Where Is It Going?
Those with a second property they can either sell or move into after selling their first home, rejoice. The numbers have only gone up since looking at the data from the prior years mentioned. Now into 2022, we are seeing the full effects of the storages in not only homes on the market but supplies to keep building new homes as well. A record number of borrowing has not helped matters either given those hoping to buy a home in Toronto are battling against the current of double-digit monthly gains.
The amount of sales did increase from 2020, the unprecedented year that it was, but the higher number of transactions has done nothing to help put housing more in reach of those hoping to get off the treadmill that is renting. There was an over 6% increase in homes for sale but that still is at the level it needs to be to match the year-over-year growth the city is seeing, as mentioned.