During the past few years, there have been quite a lot of investors coming into the Toronto real estate market. This interest has increased by about five times the normal amount in the past year alone. There are more and more real estate investors that see the huge potential of the Toronto real estate market, comparable to any other big city in the world, including New York. This new wave of investments is pretty encouraging and has led to the success and stability of the real estate sector in Toronto. Many make use of a second mortgage Toronto broker to leverage their existing properties in-order to put a down payment on a new investment property.
These investors have put Toronto on top of their list when it comes to massive investments in the housing market and this is regardless of the global economic crisis, which has led to the crush of other markets all over the world.
Making use of a Mortgage Broker in Toronto for a real-estate transaction always makes sense…
This influx of foreign investments means that Toronto real estate is ready to move to the next level and become one of the most valuable markets in the world. Foreign investors who are coming from all over the world have laid the foundations, turning the city of Toronto into the condo capital of North America.
The property boom in Toronto is based on foreign investors that have found some great opportunities and invested loads of cash into the Canadian market. Some of them are Russians, British; others are South Koreans; they’ve all led the way in buying properties in Toronto. Citizens from South American countries like Venezuela are also present in the Toronto market. Some other groups include investors from Greece, China, and Ireland, and all of them are determined to acquire a piece of Toronto.
During the past few years, investors from East Asia and Europe started to enter the Toronto housing market for the first time. Some of them are Iranian and the majority of them are buying these properties as vacation homes. When they are not living in Toronto, they usually rent their home to people living in the city for serious profits.
Another reason why people are investing in the Toronto market is because of the social tolerance in the Canada. The country records very low cases of racial, religious, and other forms of discrimination. Especially Iranians have found Canada to be a viable alternative to countries like the USA or the UK for their businesses. Canadians welcome all people no matter their ethnic origins or religion. One thing is sure, the Canadian real estate industry has become what it is today because of local and foreign investors. Speaking with and making use of a mortgage broker in Toronto for real-estate transactions always makes sense if you are seeking the best deal.
Condos constructed within the past five years top the desirability list. Statistics show that the typical first time home buyer is between 25-30 years of age. Couples are willing to spend about $400,000 on a home, while singles, primarily women will spend between $250,000-$300,000 on their first home. The statistics show that men tend to be married or to take a little longer, when single to seek out that first home outside of an apartment.
In January 2022, demand for owned housing remained historically high. Simultaneously, listing supply remained limited, resulting in tight market conditions and extremely high year-over-year price growth.
In January 2022, the TRREB MLS® System reported 5,636 sales — a decrease of 18.2 percent from 6,888 sales in January 2021. While sales were down significantly from last year’s record level, January 2022 sales were the second most on record for the month. This outcome is consistent with TRREB’s projection for a high sales performance in 2022, but falls short of the record set in 2021.
New listings fell at a similar annual rate to sales (-15.5 percent). Due to the fact that sales and new listings proceeded in lockstep, active listings totaled 4,140 at the end of January, down 44 percent to the lowest level in more than two decades.
The persistence of tight market conditions resulted in an annual gain of 33.3% in the benchmark MLS® Home Price Index Composite. Likewise, the average selling price increased 28.6% year over year to $1,242,793.
TRREB’s outlook for 2022 is as follows: Total home sales reported through TRREB’s MLS® System in the GTA will reach 110,000, a decrease from 2021 but still a strong result in comparison to previous years; and The average selling price for all home types combined is expected to reach $1,225,000, an increase of approximately 12% over last year.
Toronto is considered as one of the most visited cities on the planet and this is one of the main reasons why many foreign investors have decided to pour money into the city. The Canadian authorities are also encouraging these investors to become a part of the Toronto investment scene. With all of these influences, it only comes naturally that Toronto is emerging as a global leader in real estate investment.