Market Update: Fasten Your Seatbelt

  • Wilson Sisters
  • 05 March 2017

Toronto real estate is getting insanely expensive. Condo prices in the downtown core are rising at what is possibly an alarming rate, as much as $10,000 per week in a lot of cases. Want a house? Well, that's a whole other story. We have buyers ask us "how much do you think will this one go for?" There is NO way to answer that question with any confidence until we know how many competitive offers we are facing, and even then the sale price can be surprising and leave us asking WTF. Comparable sales are not even useful any more, unless the property sold the week before, and even then, in order to win your bid, you had better tack a bundle on to your offer beyond that last sale price. 

We are still making sales and finding beautiful homes for our buyer clients though, and sipping champagne with them to celebrate afterward. The elation they feel when we secure their future home is incredible. The relief they feel knowing that they are finished their search, and their potential purchase price is no longer rising by the day is also cause to celebrate. They are in the door and they can start accumulating wealth at a fairly quick pace.

Are we at the top of the market? We don't think so. Some are questioning whether foreign buyers are driving up prices here since Vancouver implemented the 15% foreign home buyer's tax last August. The Toronto Real Estate Board claims that less than 5% of Toronto buyers are foreign, and if this is true, we doubt that a similar tax here will have much of an effect. We expect prices to continue to rise this year due to extremely low supply and strong demand. With prices rising at the pace they have been in single family and low-rise homes, buyers have been pushed into the condo market creating a tight supply problem there also. This has been compounded by the fact that condo compeletions are down significantly. Condo launches are selling out quickly, sometimes before they even reach the public. The demand is intense. $1000 per square foot used to be Yorkville condo pricing. Now? It's starting to happen in resale in areas like King and Bathurst and the St Lawrence Market neighbourhood (so far mostly in lofts and other unique spaces). 

So, in the coming year, as Toronto becomes less and less affordable, we expect to see more buyers either getting creative and purchasing property with friends or family, or looking in less expensive locales.

Which brings us to The Wilson Sister's exciting new team expansion news! Toronto, while you are our first love and always will be, we have been quietly cheating on you for over a year now with Hamilton. If you follow us on Instagram or Facebook, you may have caught wind of our affair with The Hammer. Why did we decide on becoming Toronto to Hamilton move specialists? Check back in the coming weeks for all the juicy details. Let's just say for now that Hamilton is full of surprises and the price tag to live there will be sweet relief after what you've been seeing in Toronto lately. We will continue to provide exceptional service to Toronto buyers and sellers, as we have for almost fifteen years, but now, with our knowledge of the Hamilton market and neighbourhoods, we are your go-to team for Toronto to Hamilton moves!