The Toronto real estate market in 2018 had its ups and downs. In the spring, numbers were way down because we were comparing to the spring of 2017, which saw a market frenzy before the Fair Housing Act came into play. The numbers continued to be low until July when they started comparing sales and prices to a more normal market.
What did remain consistent is that well maintained homes in hot neighbourhoods sold quickly and condos continued to sell extremely well, with the average price increase hitting double digits each month.
I think we’re going to see a pretty flat market in terms of prices with some small increases here and there. In November, the average price for a detached home was up by 1.8% as compared to 2017. I think that increase could repeat itself or be slightly lower this coming year. If you are considering selling you will want to look your best in order to compete.
There’s still a strong appetite for Toronto’s most desirable neighbourhoods.Should you be living in the center core of Toronto and be considering a move your house should sell very well in the spring market especially with the lending rates remaining low. If you have a large home with a value over $3,000,000. It just takes longer to sell.
Condos are still going to see advancing prices, exponentially. In November 2018, the average price paid for a condo in Toronto was $595,678, up 7% as compared to 2017. You may say 7% is not outrageous, but when you look closely, the average price went up by $40,000. So that means if you were waiting to buy a condo until prices went down, the unit just became $40,000. More expensive.
If you were waiting to purchase from 2016 thinking prices would go down, well, the average unit would cost you $124,000 more.You keep hearing that the condo market can’t continue to grow like that but then, when you look at the developments like Scollard and Bay priced on average $2280 per square foot as the population continues to grow. We need places to live. Condos are going to increase in value again in 2019 and not by a small amount.
Anything along the LRT is a good investment and will increase in value because of transportation upgrades. There are areas such as Jane and Scarlett Road where wartime bungalows are being bought and torn down. Mount Pleasant and Eglinton, Leslie and Eglinton, Dufferin and Eglinton, Victoria Park and Eglinton, Warden and Kingston Rd is special as it offers the beach with new construction of condos, town houses, and small bungalows with second stories being added, all provide opportunities both in the preconstruction condominium market as well as housing.
As we see positive signs towards a new downtown relief line, the surrounding areas that are already doing well provide plenty of room for future growth. As the DTR gets approved and built, anything that’s near it or any public transit routes will be a good investment over time.
St. Clair West is booming with price increases and has nearly reached its peak. Its a young vibrant community with Wychwood Barns as the local gathering hub. New restaurants and shops are abundant as entrepreneurs continue to invest.
Leslie and Riverdale will continue to see price increases. Looking east of the DVP below Gerrard and above and below Dundas where you should see price increases above and beyond other local neighbors.The Old Weston Bakery Warehouse (Wonder Condos) is going to bring fresh new life into Eastern Avenue.
As we see the West end peak it’ll be interesting to see what the new developments bring in some of the older industrial areas.
Church and Wellesley will see moderate growth. House prices haven’t grown in the same way on Gloucester or McGill because of the whole downtown sensibility. There aren’t as many families that want to live right downtown.
With daily market changes we also see changes in the pool of buyers. Sometimes buyers are uncertain and hesitant to buy or sometimes feel such urgency that they’ll pay anything. From one week to the next one doesn’t know what to expect.
There’s no golden rule to the Toronto real estate market. I’m looking forward to what we’ll see in 2019!