The Toronto real market continued its torrid pace with the sale of 12,085 homes in April, the best April in the 100 plus year history of the Board, and up 7.4% over April 2015.
While the average price in all of the Toronto Real Estate Board marketing areas for all types of residences now stands at $697,679, the price breakdown for local areas is as follows:
City of Toronto $718,682 (Detached Homes only in April $1,257,958)
York Region $896,476
Durham Region $494,643
Peel Region $582,496
Is there a real estate bubble? Will prices adjust? Is it too late to buy? These are questions I am continually asked, and while everyone has an opinion, no one, truly knows. Economic forecasts and weather forecasts are similar. The systems are just too complicated and the experts are best guessing with the information at hand, and that changes minute by minute.
Here is what I say to my clients.
People need to live somewhere. Our vacancy rate is near 0%. In other words very low. Basement apartments in Newmarket are renting for $1,200 per month. Downtown condos are renting for $1,800 -$2,200+ monthly! If you buy a property to rent and hold, prices may adjust, but will always recover as the population continues to grow. As long as you have a good tenant the price fluctuations will not affect you.
If you are buying a property to live in, it’s your home, and prices may fluctuate but as long as you live there, price is irrelevant, and will always recover.
In 1975 the average price was $57,581
In 1995 the average price was $203,028
In 2015 the average price was $ 622,217
Who knows what the next 20 years will bring, but I do know Toronto will continue to grow and people have to live somewhere!
Have a great May and don’t forget, I am never too busy for your referrals!
Your Friend in Real Estate.
Steven Maislin, R.E.B.B., I.R.E.S.
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