Toronto Housing Market Review

Toronto, Canada’s financial capital, is considered to be an international center for business and finance, and its robust economy has positively driven the booming housing market. However, this city is not without its own housing-related troubles as investing here is tougher compared to other cities.

According to the Toronto Real Estate Board, sales in February 2018 have fallen between 85,000 to 95,000 units compared to the 92,394 units sold in the same month last 2017. This may have been brought about by the significant increase in prices of houses and condos in the city. A year to year comparison for single-family housing prices in Toronto shows a surge of 19.6%. Condominium prices also climbed about 41% this year versus condo prices in 2017.

With mortgage rates remaining unchanged at 4.6%, housing starts are predicted to remain moderate for 2018. This performance may be largely attributed to measures imposed by the Ontario government to improve the affordability rates of real estate properties.

As of October 2017, business permits issued in Toronto was up by 15% and valued at $815 million. But as of January 2018, only 3,346 projects were completed while 24.3% were completely dropped. Most of the dropped projects were single-detached and semi-detached houses and condominiums. Those completed were mostly row houses, apartments, and rental units.

According to the Canada Mortgage and Housing Corporation (CHMC), the number of absorbed units also dropped by 33.1% in 2018 compared to the previous year. However, with the high yield and high demand for real estate projects, the housing market in Toronto is predicted to continue to improve as shown by the increasing developments in the city.