Toronto’s real estate market is continuing to defy expectations as the market strengthened again in the month of July. According to statistics published in the National Post, home prices in the Greater Toronto Area rose by 7.5% from a year earlier to an average of $550,700.00 for the month of July.
Notably, though, the holiest grail in Toronto’s housing market, the single, detached home in the 416 area code has dropped to an average of $880,433.00. For those keeping score, that is a fair bit lower than it was just a few months ago when single detached houses in Toronto made headlines for having an average selling price just shy of 1 million dollars.
As has been the case for almost a decade, there is continued talk of a housing bubble set to burst, or perhaps a “soft landing”. In the last few years there has been much talk about Toronto’s housing market being artificially inflated by foreign investors parking their money in what they see as a safe investment. Forgetting for a moment the fact that many large, cosmopolitan cities have long thrived on foreign investment in real estate – and perhaps accepting that Toronto may have ascended – recent statistics published in the Toronto Star show that these fears are overstated. According to a survey by the Canada Housing and Mortgage Corporation, only 17.1 per cent of owners in Toronto’s and Vancouver’s housing condo market (the most popular market among investors) are investors while 82.9 per cent of owners reside in their condo units.
Our homes are often the greatest investment we make in our lives and prudence is always advised. We always encourage our clients to do their due diligence before purchasing and we always take the greatest care to perform our due diligence on your behalf as well. We are always happy to discuss potential purchases or sales and advise you on the best course of action. At Davidzon Burshtein LLP we strive to be your trusted Toronto real estate lawyers.