Real Estate Market's State Of The Union

As 2015 comes to a close, it has been another active real estate market. Across my desk came in a report issued by BILD (Building Industry & Land Development Association) and TREB (Toronto Real Estate Board) regarding supply dynamics and it's impact on GTA home prices.  I'll breakdown the numbers for you and explain what it means from a real estate investor's perspective.

Record numbers of sales in 2015

124,123 new and resale homes sold in GTA in first 10 months, of which 26,388 were new homes (high & low rise)

New Home Sales 2015

There is no more land to build freehold homes in the GTA. Lower supply of land continues to drive low rise prices above inflation

gta real estate Average Price

Average New Home Prices

Low rise affordability is an issue which continues to drive demand towards high rise housing

Toronto Real Estate Average Price

Toronto Average Prices

As of Nov 30, 2015 per TREB's Toronto MLS sales


Single Detached Affordability Gap

To afford a single detached home with 20% downpayment, $174,854 income is required. Average income per Statistics Canada in 2013 was $107,200.


  • High rise development will continue as the following factors are driving demand:
    • Lack of land to develop new low rise housing
    • Higher than inflation price appreciation for low rise is causing affordability issues for first time home buyers and move up buyers driving them to consider high rise lifestyle
    • Bidding wars to continue for low rise listings
    • Demand for the 905 detached homes will continue to increase due to affordability (more house for the money compared to the 416)
    • More high rise development outstide the city of Toronto around major transportation hubs
  • Investors Opportunity
    • Low rise (semi-detached & townhomes): demand for ground level living and lack of supply presents an opportunity for higher rental incomes
    • High rise: is benefiting from low rise un-affordability creating demand that's being absorbed by supply of new condos, aka balanced market

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