Canada is one of the fastest-growing nations on earth. A combination of immigration and natural growth has seen the country’s population expand at nearly double the rate of other G7 countries in the past decade.
As Canada’s most populous city and leading economic hub, a substantial portion of this growth is taking place in Toronto. In addition to an influx of domestic relocators, both immigration targets and the city’s natural growth rate are having a major impact on key infrastructure.
As Toronto continues to grow, long-term population projections have become a hot topic in the realm of real estate. Paired with existing market conditions, these projections present a range of specialized considerations regarding housing inventory both locally and nationwide.
Looking to buy, sell, or invest? Our strategic advisory services can ensure you optimize your investment. Call us at 416.441.2888 or reach us by email at evan@christensengroup.ca
The Current State of Housing in Toronto
Over the past 12 months, real estate in Toronto has shifted tremendously. Once a red-hot seller’s market, rising interest rates have caused conditions to slow down.
At the peak of Toronto’s seller’s market, real estate prices in the city continuously broke records. An existing shortage of inventory paired with an influx of buyers led to the cost of homes skyrocketing. Although many sellers were enjoying lucrative returns on their homes, the quickly-rising costs of properties began to cast a light on the long-term implications of low housing inventory in Toronto.
While today’s interest rates have reduced the number of buyers in the market, the lack of available inventory continues to impact housing costs. With Canada set to welcome nearly half a million new residents in 2023, supply and demand will continue to have a dominant influence on real estate in Toronto.
Looking to capitalize on Canada’s rapid growth by purchasing an investment property? Check out these blog posts for unique insights on investing in Toronto.
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Impact on Home Buyers
Population growth will arguably have the most impact on Toronto home buyers. Despite government initiatives for increasing the available supply, long-term need is trending to significantly outpace the selection of available homes for buyers. Therefore, buyers who are proactive in heading to the market have the best opportunity to optimize their purchase.
In any market condition, working with an experienced and top-performing real estate agent is the easiest way for buyers to land their dream home. From start to finish, they’ll help you establish a financial plan, find the perfect property, and execute strategic negotiations to ensure you get the best deal possible.
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Implications For Sellers
Despite balanced conditions, long-term population growth will continue bringing a variety of motivated buyers to the market. Regardless of interest rate fluctuations, sellers in Toronto have a strong opportunity to find success. However, while high demand and low supply are favourable for home sellers, those looking to make their sale seamless and profitable should seek expert support.
For sellers looking to achieve an exceptional return on their investment, working with an elite real estate agent is the best way to optimize your results. To further your advantage, choose an agent that has proven experience selling homes in a variety of market conditions.
Achieving your real estate goals requires strategic insights and expert knowledge. For a crash course on Toronto’s dynamic housing market, explore these resources from our blog.
- Buyer’s Market VS Seller’s Market – What’s the Difference?
- What Makes a Good Investment Neighbourhood in Toronto?
- Can You Sell More Than One Investment Property to Buy a New Home?
Rental Market Impact
Similar to home buyers, a relatively low supply of rental housing in Toronto has contributed to a significant spike in rental rates. While demand was already strong, the recently increased costs of mortgages are making the rental market even more competitive as fewer people are able to buy a home. As Toronto continues to see exponential population growth, this gap between demand and inventory will only become larger.
These conditions have created unique opportunities for both emerging investors and established landlords. With market rental rates continuously reaching new heights, income properties in Toronto are proving to be more profitable than ever. With fewer buyers in today’s market, some investors are taking advantage of the balanced conditions to expand their portfolio.
Looking to buy, sell, or invest? Our strategic advisory services can ensure you optimize your investment in any market. Call us at 416.441.2888 or reach us by email at evan@christensengroup.ca.
