The end of the year is almost upon us and that means many investors are looking towards 2019 and what it might bring.
Toronto’s real estate market has been one of the hottest in the world for the past several years, experiencing previously unheard of gains within mere months.
But where is the market predicted to go in the new year?
Here I have put together my Toronto real estate forecast infographic for 2019 that details all the latest trends and what to expect next year. Enjoy!
In 2018, both the Federal and Provincial governments enacted countermeasures to stop what many saw as a runaway housing market in Toronto from crashing. This including foreign buyers taxes to curb skyrocketing prices and help ease the housing shortage.
While that did result in a slight cooling of the market, with a marginal dip in prices and total number of sales, we can see that in November, these prices started to climb again.
My Toronto real estate forecast for 2019 is to get into the market while the prices have dipped slightly, as this is likely the cheapest you’ll see the market for years to come. If you are a property owner looking to sell, you could capitalise on the increased competition and the lure of lower prices to entice multiple offers on your property to drive up the value as well.
Prices Set To Soar
Coming off the back of the biggest year in Toronto real estate, where the average price for a stand alone home in the GTA rose to $1.275 million, 2018 saw a lower average price point reached.
Average homes sold for $1.06 million during 2018, likely due to the government’s interventions as well as a glut of inventory on the horizon causing many buyers to hold off. However, the best Toronto real estate forecasts see these prices set to climb again in 2019, with an average increase of 3% predicted.
Unlike freestanding homes, the average price of a condo in Toronto appeared to be unaffected by the new restrictions. Prices continue to increase steadily for condos all over the GTA, with the trend set to continue into 2019.
This means it is a great time to get into the condo market as a first time home owner, or as an investment property. The most valuable condos continue to be two bedroom units, which command prices over $600,000 in many desirable neighbourhoods.
There are plenty of beautiful neighbourhoods in Toronto, from leafy family friendly streets to bustling urban metropolises. Choosing just a handful of areas to recommend is a difficult decision, but I have singled out four great neighbourhoods below.
These neighbourhoods have only experienced year over year gains for the last six years, making them an ideal investment opportunity if you are looking to enter the Toronto real estate market.
Situated to the west of the city, The Junction has become one of the most desirable neighbourhoods in Toronto. The Runnymede-Bloor West recently won best neighbourhood in Toronto, which includes parts of The Junction. Houses in this area have experienced a 44 percent increase in value since 2012, with the average house worth $813,000.
One of the most diverse and exciting neighbourhoods in Toronto would have to be The Annex. Home to hundreds of cafes, restaurants, shops and more, the Annex is at the top of the list for many local Torontonians. The average house is now worth $1.5 million, representing a 37% increase since 2012 prices.
With so much greenery, parks, and open spaces, High Park-Swansea has become a hotspot for young families looking for a bit of outdoor time. High Park is one of the nicest parks in the city, so it makes sense that people are flocking here in droves. This popularity is underscored by a 34 percent increase in average house prices up to $1.1 million.
One of the fastest growing neighbourhoods in Toronto, Danforth is home to Toronto’s iconic Greektown. With a wealth of delicious greek restaurants and bars to choose from, this is a prime piece of real estate in the city. The average home in Danforth has grown by an incredible 69 percent since 2012, worth an amazing $964,000 today.
One of the main reasons property investment has been such an attractive option in Toronto recently has been the exponential rise in rental prices throughout the GTA.
Average rents for a one bedroom home come in at $2,200, while a three bedroom can set you back $3,800 a month. Compared to the average mortgage carrying cost of around $1,800 and you’ve got yourself a winning combination.
My Toronto real estate forecast for 2019 is to get into the property investment game as soon as you can to capitalise on the lower purchase price and offset the cost of your investment with the record high rental market.
Are you looking to buy or sell in Toronto? I’m a passionate real estate agent with years of experience in Toronto and the GTA. I specialize in connecting the perfect buyers with the perfect sellers, and I don’t rest until I secure the best possible outcome for my clients.
Contact me today and let’s discuss what I can do for your future.