The State of Toronto Real Estate
It is July and a lot has changed since the beginning of 2017. Up until April there were multiple offers on virtually every Condo or Single Family Home listed for sale. That is not the case now. Provincial legislation aimed at cooling the market combined with the constant barrage of media articles creating fear in Buyers has succeeded in doing just that, temporarily.
Last week, the Bank of Canada increased interest rates by .25% adding more fuel to the media fire. “Is this a blip or is this the beginning of a severe correction.” The reality is Toronto has an overwhelming shortage or property for rent and for sale. Yes, even now there are 22% less condos for sale and 21% less condos for rent downtown than there were on year ago today and there is no relief in site. This is a far cry fromwhat the media claims to be a “flood” of property on the market and the single family inventory is no different. The city is building office buildings at a rate never seen before and we are not building residential property to keep pace and all of the new provincial regulations are going to further slow the creation of new condo inventory both for sale and for rent. We are headed for an unprecedented shortage and prices and rents are going to skyrocket.
Smart buyers will purchase over the next 6 months during the calm and the masses will wait until there are 18 offers on every property again before they get back into the market. There are not going to be any large drops in prices as sellers choose not to sell rather than to sell at a discount. That being said, buyers can purchase at a fair price without competing against and losing to someone who is willing to overpay in a multiple offer situation. Take advantage of this time, it may not last.