With record-breaking sales figures, rising rental prices, and concerns about foreign investment, Q3 2016 was a fascinating time for Toronto’s condo market. The Toronto Real Estate Board (TREB) has released its stats for September and the year-over-year changes are showing tremendous growth.
Toronto Condo Market September versus August
First off, the transition from August into September saw a bit of a slowdown in condo real estate activity. In short, fewer people were buying. There was a decrease in the number of condos sold in the GTA by 206 units, while the number of new listings went up and active listings decreased, either sold or taken off the market.
With international buyers reportedly moving away from Vancouver, people in Toronto are talking more about foreign condo ownership and investment. September 2016 saw a big jump in GTA real estate with 9,902 sales, according to TREB, and there is speculation that international buyer interest might have something to do with it. But hard data has yet to be released to prove this.
International buyer data in Toronto and Vancouver
In 2015, CMHC released data that found 3.3% of GTA condos had international owners, a statistic that was up from 2.4% in 2014. They reported that 10% of units built after 2010 in Downtown Toronto were internationally owned. Reports for Ontario 2016 have yet to be finalized, but some data involving international buyers has been collected from B.C.
If you haven’t experienced it, you might not know that finding condos for rent in Toronto can be a bit tricky. Where do you even start to look for available rentals? And when you finally find that perfect place, how do you seal the deal?
Our Director of Finance & Business Development and licensed Toronto realtor, Gurpreet Thind, knows this process very well, and he thought it was a good idea for us to share some of our tips to help renters out there get on top of the game.
If it’s true that there’s a season for every Toronto neighbourhood, we think that autumn falls best in the Annex neighbourhood.
Even as the real estate market revs up for the fall season, autumn’s gentle chill puts many of us into a slow, cozy mood. We want to stroll along Bloor Street from Brunswick to Bathurst in the early evening, past the bright shop windows and warm cafes, the sounds of fun bars, and the delicious smells of so many different restaurants.
Since mid-August, Vancouver’s new foreign-buyer tax has caused a stir of commentary about the future of Canada’s real estate market. If you haven’t heard, the foreign-buyer tax imposes a 15% property transfer tax on all non-Canadian buyers who purchase residential real estate in Vancouver. That translates to $105,000 in additional taxes on a $700,000 condo (average 800 square-foot for Vancouver).
Changes in the Vancouver Condo Market
There have been a lot of different reactions to the new tax. Non-Canadian homeowners feeling frustrated and unwelcome, local Vancouverites concerned solely with cooling the Vancouver market, others expecting little change unless further efforts are made to improve supply, and economists saying the tax is nothing more than a “temporary disruption.” But it’s not temporary for everyone. One group of foreign buyers has filed a Class-Action Lawsuit against the B.C. government, effectively representing every non-Canadian who the tax has disenfranchised. But the Supreme Court could take months or even years to certify the case. So after almost a decade of steadily rising prices, changing tides have finally come to the west coast. Wondering if it’s a smart time to turn an eye to condos for sale in Vancouver? Well, the future may be promising.
Real estate in Toronto is certainly a hot topic at the dinner table these days. With stats from BILD and Altus Group showing 1,880 high-rise Toronto condo sales within the month of August 2016 alone, we decided to look at how condos fit into the mix in the Toronto market, compared to affordability in other cities around the globe. We compiled the following research and concluded that based on this data, the Toronto condo market is not actually overinflated relative to other major cities. It’s a hot market that’s for sure, but not overheated. This global comparison shows that condo investment in Toronto is very likely to continue to see potential growth in value over time. Check out the dramatic difference in average condo price per sqft across 18 different cities: