At a recent Baker Real Estate webinar, we got an inside look at the shifts in the real estate market. As seen by the figure below, there has been a decrease in sales over the past 10 years. That being said, there are more projects being developed in the current and into next year which should balance the rise and fall trends we are seeing with the market. High rise sales are only down 12% over the long range average while low-rise sales are down a great 55% over the long range average.
We see a growth in both immigration (1oo thousand new individuals a year) and young folks (2% per year) in the city, individuals who are more likely to buy a condo than purchase a low-rise option. As a result, we are seeing a major gap in prices between high vs. low rise condos. This, along with other factors, also has had an adverse affect on the rental market. Quarter leases are up by 31%, with rental figures up 20%. In Toronto, rent has gone up by 6.6%. On average, we see a 4.4% average in the suburbs.
With an increase in construction and many leftover units available, it is a great time for folks to take advantage of the situation and investment in properties.
Source: Baker Real Estate