In the last few years, we’ve seen a variety of projections about the ever-tremulous Greater Toronto Area Housing Market. The Canadian Real Estate Association has expected a slowing number of home sales, among ever growing prices. Last year’s market reforms sought to cool down the bubbling market, and halt foreign investment, as well as make housing more affordable for the population. Currently, we’re seeing a mild regional slope downward in home purchases, with more and more people opting to rent, move from Toronto urban sprawl and into suburbs, and a steady interest in home improvement and resale purchases.
In recent months, with Justin Trudeau’s announcement to bring in a million new immigrants forecasts nothing short of a housing boom, in less expensive areas of the city. Affordable housing is therefore going to be more in demand, and condos and houses selling for under 500k will continue to do well in the market. Similarly, rental income potential is important, contributing to the amount of basement finishing projects and second apartment conversions, as well as split homes in the GTA.
Tips for Homeowners
While Vancouver’s Housing Market has not yet encountered a crash, leading experts to believe Toronto is safe as well, the fact remains that it’s better to be safe than sorry. However, more and more Torontonians are putting up their homes for sale. This means that there is a steady amount of homes on the market, and bids are no longer going up to 50% over asking price (as was often encountered in 2015 and 2016).
What this means for homeowners is that while it’s not as hot, your home is still a commodity in this market. If you live in one of the top neighbourhoods in Toronto, you could still potentially see a huge return on your original investment if you sell today. However, this could also mean that you’ll have a difficult time finding a home in the area due to the housing shortage. If you’re looking to up your space, comfort and square footage, your best bet this year is still renovation or addition.
Tips for Investors
So, what about investors? Homeowners with no plans to sell or invest in the housing market are finding better ways, as the shortage of housing is causing more and more people to rent in the vicinity of Toronto. Basement apartments, guest suites and unused rooms can churn out a steady monthly profit, especially when renovated for modern tastes.
If you’re looking to buy into housing, one of the best options is to build custom, for resale purposes. With new immigration, demand will likely increase, resulting in more need for affordable housing. As foreign investment shows no signs of slowing, custom luxury homes are still a pinnacle of profit, especially when built in some of Toronto’s most prestigious neighbourhoods, and in the suburb towns such as Vaughan, Newmarket, Mississauga, Oakville and Scarborough.
Tips for Builders
Custom home builders and renovation contractors, you’re in for another busy year. We tip our hats to you and wish you all the luck in your home building and renovation this upcoming season.
RS Homes is your number one luxury custom home builder in the Greater Toronto Area. We provide clients with start to finish design, architectural drafting, planning, engineering, building, and decorating services for their custom home projects. Offering fully customizable solutions, market-ready investments and financing options, we are the best team to satisfy all your home specifications and ideas. Bringing together a number of fields, we create functional, beautiful solutions for your and your family’s needs, and construct beautiful homes throughout the region. Browse through our website to learn more, or get in touch with one of our company representatives for more information on housing, custom home building and how we can help you invest in the housing market!