Toronto Real Estate Prediction
Toronto’s real estate market is expected to favor sellers in 2021. The year is going to be characterized by a consistent supply shortage and increasing prices. Low inventory was a consistent trend across Canadian housing markets in 2020, putting upward pressure on home prices.
Average house prices rose from $819,832 to $918,883, which is a significant increase. The increasing demand, low supply, and upward pressure on prices will combine to significantly impact both activity and pricing in the housing market.
Keep reading to find out everything you need to know about the Toronto real estate market.
Toronto Monthly Real Estate News
Are There Bidding Wars for Toronto Real Estate?
Bidding wars are a regular feature in the Toronto real estate market and are known as listings with multiple offers. It’s a scenario that can cause apprehension and nervousness even in the most confident home buyers. A bidding war in the Toronto real estate market isn’t like the bidding wars people usually see at auctions. There’s no real active competition, and the clients typically make their offers through the sellers using their realtors. Not every house in Toronto gets multiple offers, but the hottest properties usually do get three or four offers.
This essentially means that Toronto sellers are at an advantage and can sell the property for more than the listed price. Sellers can also not disclose the offers clients have made to other clients. The best strategy to use if one’s interested in the house is to start off with their best possible offer. That gives the buyer the best chance of successfully making a transaction.
Toronto Detached House and Condo Prices
2020 started as a record-breaking year for Toronto’s housing market. However, it all changed when the pandemic hit. Demand for freehold properties in Toronto was already high. The vast increase in people working from home generated an even greater need for these properties.
What happens as a result is that an already bustling Toronto real estate market turns into an absolutely frantic one. While generally, Toronto house prices increased during 2020, there was a decrease in demand for condos. While the Toronto real estate market is currently rising for freehold houses, condo sales have slowed down significantly. Experts expect that eventually, once the impact of the pandemic passes, things will return to normal.
As a result, many people are considering the current market in Toronto as an opportunity for the future. Individuals interested in Toronto condos are currently getting a lower price and can look at greater returns in the future.
At a single glance, the Toronto housing market has seen an average 11% increase in housing prices and has seen a 63% bump in transactions. Even though the pandemic has virtually stopped most industries from functioning, Toronto’s real estate market is still booming.
The demand for single-family houses is significantly driving the market upwards. Detached and semi-detached houses have seen a 53% and 55% increase in transactions, respectively. Condos indicate a 75% increase in transactions, as people look to take advantage of declining prices. While townhouses are experiencing the greatest growth in the average price, transactions are down by 14%.
These trends will hold consistently for the first few months of the new year. However, one can expect the housing market to return back to normal as the impact of the pandemic subsides.
Anyone interested in purchasing real estate in Toronto can look forward to a diverse variety of neighborhoods to choose between. Here’s a list of the most popular neighborhoods and suburbs of Toronto:
- Eglinton West
Home Buyers Are Moving to Toronto
There are two major types of homebuyers in general: people who buy homes to live in them or people who buy houses to earn a profit. Toronto is a diverse city and has several great neighborhoods to offer.
That's why there's a significant increase in the price of family homes and the number of sales. At the same time, the decline of Toronto condo prices represents a great opportunity for potential investors to get a decent profit.
Homes For Sale In Toronto
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Property Tax Rate in Toronto
The average property tax on a residential property in Toronto is 0.599%, while a multi-residential property has a total tax rate of 1.09%. Property tax refers to the annual amount a landowner must pay to the local government or the corporation in their area. The property includes tangible real estate property, a house, an office building, or any other property under the individual’s name.
A property tax bill is calculated by multiplying the phased-in property assessment value in the current year according to the Municipal Property
Assessment Corporation, by the council approved city tax rate. There are some additional tax charges that individuals have to encounter and specific special fees.
Land Transfer Tax in Toronto
One of the main constraints about buying a home in Toronto is paying the land transfer tax. Anyone that purchases a home or condo in Toronto has to take into account the land transfer tax. Under certain circumstances, first-time buyers might be eligible to receive a refund for the land transfer tax.
Here are all the details about the Toronto land transfer tax potential buyers need to know about:
- 0.5% up to $55,000
- 1% of the value between $55,000-$250,000
- 1.5% of the value between $250,000-$400,000
- 2% of the value between $400,000-$2,000,000
- 2.5% of the value above $2,000,000
Living in Toronto
One of Toronto's best things is that it’s one of the most livable cities in the world. It has a population of just below three million people and is one of the world's most multicultural cities. Statistics indicate that there are more than 140 languages and dialects spoken in the city.
Even though Toronto isn’t the country's capital city, it represents an industrial hub and provides individuals with countless economic opportunities.
Toronto also consistently finds itself in the running for one of the most livable cities in the world. The city enjoys a reputation for being diverse, clean, and exciting.
Another significant benefit of living in the city is that it offers 50 kilometers of waterfront. Individuals can choose between visiting the beach, park, marinas, and plenty of waterfront trails. Anyone that lives in the area is going to have a very enjoyable outdoor life.
Toronto also has very diverse weather. Individuals can experience all four seasons during the year. A good thing is that the winters aren’t as severe as in other parts around the country. However, it still gets fairly chilly during the winters.
List of the top schools in Toronto Ontario
When considering investing in Toronto real estate, it is always good to know the top schools in the area. A good school in the vicinity can increase the value of a property and is a good indicator of where to invest.
Here is a list of top schools in Toronto:
1. Old Orchard Public School – located in the West End District
2. Pape Avenue Public School – located in the East End District
3. Swansea Public School – located in the West End District
4. Crescent Town Public School – located in the East End District
5. Orde Street Public School – located in Downtown Toronto
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Other Real Estate Resources You May Be Interested In
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