Toronto Real Estate Board members reported 7,187 residential sales through TREB’s MLS System in March 2019, almost the same amount as the 7,188 sales reported in March 2018. While the number of sales remain the same, the number of new listings, homes available for sale, was down by 5.1 % year-over-year. This lack of inventory has created a shortage of homes available for sale, resulting in multiple offers and a price increase of an average of 5% since January of this year.
Unquestionably, there seems to be a concern about the marketplace and for the life of me I cannot fathom why. Interest rates remain low and with the lowering of the Bank of Canada yield rates, may drop further. Immigration and foreign investment continues as does the strong economy. New condominium towers continue to be completed and many new starts are under construction, but immigration and demand continues to swallow up available units. The vacancy rent is still at 0%, resulting in increased rental rates. A modest 500 sq. ft. downtown condominium unit now rents for $2200 - $2400 per month, with parking spaces renting for $125-$250 per month.
We truly believed the market is poised to take off again, with only the stress test holding back buyers who want to buy more expensive properties. New construction towers represent great rental and investment opportunities, and should be considered.
If you are thinking about upgrading your home or buying an investment property, or know of a friend who is, give us a call. Prices in 2019 are already up 5%. Fortune favours the bold. You don’t have to buy, but at least let’s talk. Let us put our experience and expertise to work for you.
Have a great month.
Your Friend In Real estate.