For anyone unfamiliar with Toronto, there are many waterfront condos currently under construction and many new builds to choose from. With Waterfront Toronto, there are plans for massive, controlled development in the area. One advantage of waterfront condos Toronto is that there appears, at the moment, to be a better plan for ongoing development that is taking into consideration spaces for parks, walking trails, transit and keeping the waterfront open for all types of activities.
From the Canary district (not quite waterfront but easy access) to the neighborhoods to the east in the Mimico area, the variety and sizes of units are quite extensive. Each area or district is seeing massive redevelopments and improvements as the consumer and city increases in sophistication and desires of residents. There are several massive developments in the works along the waterfront at the base of Yonge Street and in the entertainment districts of the downtown. The city is approaching the 100 story level for developments as density continues to increase as well. These developments will continue to put pressure on infrastructure as well. Recent developments with transit funding will hopefully set in place, improvements in the long term for the downtown core.
As spring approaches, inventory of homes for sale is increasing. Prices for detached homes have begun to rise in many areas, while others are still going through an adjustment phase. Prices of condos have remained steady and we are seeing more multiple oﬀer situations, currently, in this market due to lack of inventory and demand remains high.
Many factors will influence the real estate markets in the near future. With a provincial election looming and no clear front-runner, the results could well influence future pricing and market trends. If a candidate that is running, who shall remain nameless, has promised to remove the foreign buyer tax AKA the non-residents buyers tax. This could and will increase foreign investment in the province and likely lead to another round of price increases in the area.
The other factor in pricing is that new construction projects are reaching and approaching $1000 per square foot while resale condo properties have yet to hit that threshold across the board. New home construction in the city center tends to be limited to infill and demolition and rebuilding in well-established areas. First time home buyers have made an exodus from the market when the new “Stress Test” mortgage rules were introduced. These rules require all home buyers to qualify at two percentage points about the key lending rate on a 5 year fixed mortgage. Currently, those rates range from 2.99 to 3.39 percent. Meaning the qualifying rates are 4.99 to 5.39. These could be even higher based on the individual.
Many don’t understand that this actually aﬀects how much an individual or couple can aﬀord. Those two extra percentage qualifying points mean that on average the amount that one can aﬀord for a new home purchase is at least 100K less than previously. For first time buyers in the Greater Toronto Area (GTA) this lower qualifying price point literally has priced first time home buyers out of the detached home market and many times out of the current condo market.
For more information on market trends, prices trends in your area or other real estate questions feel free to contact me at 647-898-7490 or via email at firstname.lastname@example.org