Toronto; The New Manhattan
Toronto average home price spikes above $900,000 amid sales surge. A daunting price tag for the average ‘Joe’ looking to settle down in the City.
These numbers are staggering but not shocking based on the recent real estate trends in the GTA. It will come as no surprise to anybody that Canada’s largest housing market, Toronto, has posted another double-digit home price increase as home inventory is on the decline. There are more buyers than there are homes to purchase.
Year-over-year, sales of homes have increase 45 % throughout the GTA and show no signs of slowing down. In February the number of sale transactions were roughly 7,250 based on recent data from the Toronto Regional Real Estate Board.
The demand far outweighs the supply to the tune of about a 33% annually. As the homes for sale dwindle in supply, Millennials will be faced with a demand problem that has had an even more profound impact with all the tech companies investing in the downtown core. The imbalance of the supply/demand in the market has resulted in the GTA becoming affordable and in many cases completely unattainable for the average Torontonian. This helps explain the pressures being put on other markets outside the GTA as people migrate to other municipalities to satisfy their housing needs. The ripple effect is intergenerational and has created a very scary time for those starting out hoping to buy their first home. With home prices selling above asking and in many times being subject to a bidding war it makes it almost impossible to those looking to make the jump into the real estate market. What was historically a seamless transition into the journey of homeownership has grown into anything but that. Many adults and those not so far from adulthood wonder if they will ever be able to afford to move out of their parent’s homes.