As “the missing middle” relates to the Toronto real estate market, the rising cost of living, increased demand from a growing population, the unemployment rate, the mortgage stress test, and the variety of housing are likely to have an effect. Even though the rising cost of living makes it harder for people who have never owned a home before to buy one, rental costs are also at all-time highs.Regarding immigration, Canada is appropriately embracing record numbers of new citizens. Yet, until additional housing inventory is supplied to the market, the increased demand is anticipated to push up both home sale and rental costs.
According to RE/MAX Canada’s 2023 Industry Trends Study, Canadian buyers and sellers of homes are confident that the market will become more balanced in 2023, even though the economy is in a state of flux. This study looks at the key economic and transactional factors that are expected to affect Canadian homebuyers, sellers, and the real estate market as a whole in 2018.
Location is projected to remain a primary demand factor in the Greater Toronto Area. It seems doubtful that prime sites, such as the downtown area and the neighborhood of Yonge and Bloor, would face large price and demand declines. Demand is more likely to drop in regions and cities that lack variation in livability (access to transit, open space, walkability, proximity to restaurants and shopping, etc.).
Rising interest rates have caused a much-needed price adjustment in the Greater Toronto Area, which has helped many move-up and investment buyers, especially those moving from city centers to outlying suburbs like Markham, Richmond Hill, Pickering, and Ajax.
Even if there is less competition, that doesn’t mean that the deposit should be smaller or not certified. A large, certified deposit is still the best way to judge the quality of a buyer’s offer and their ability to pay for the house. Correctly priced homes in most GTA markets will continue to get a lot of offers. This shows how important it is to get a mortgage commitment and inspection before making an offer, no matter how much competition there is or how the market is doing. It is usually a good idea to deliver an offer in person along with an agent. Sellers will notice the difference, and it frequently gives the buyers a leg up on the competition by allowing them to act more promptly with the Realtor.
Three Suggestions for Vendors in the Toronto Real Estate Market:
Because there will be less competition and economic problems in the second half of 2023, the first half of the year will likely be better for sellers. As a seller, it’s important to think about the difference in value between the property you’re selling and the one you’re buying. If you’re moving from a condo in downtown Toronto to a detached house in Hamilton, for example, you might be able to “move up.” Staging homes continues to be a best practice with a significant impact across markets.