In: Real Estate News19 Jul 2011
There is a lot of discussion these days about home affordability, record high prices, asian buyers, sellers market, and multiple offers. Real estate, especially in Toronto, has always made headlines in the newspapers and on TV. But now as the average price for a detached home in Vancouver has eclipsed $1,000,000, and in Toronto $700,000, it becomes even more important news. Let’s look at some of the reasons why Toronto is a great city to live in, and why Toronto has high home prices.
Toronto is located in Ontario, Canada’s most populated province. Toronto is made up of the metropolitan Toronto, including North York, Scarborough, and Downtown. The Greater Toronto Area also includes Halton/Peel (Brampton, Mississauga), York Region (Vaughan, Markham, Aurora, Newmarket), and Durham Region (Pickering, Ajax, Oshawa, and Whitby). The Greater Toronto Area has more than 5 million people (can is considered the 4th largest “city” in North America, behind New York, LA, and Mexico City. Toronto is a World Class city with world class real estate. This is part of the reason for high real estate prices in Toronto.
Toronto has plenty of job opportunities that range from CEOs of Canada’s largest companies (Banks, Pension Funds, Retail, and Commerical head offices). A healthy job market leads to a healthy real estate market. When you consider the opportunities for employment in Toronto, you cannot be surpassed by the high real estate prices. CEOs, CFOs, VPs all make good salaries. These people can afford million dollar homes in Yorkville, Rosedale and on streets like the Bridle Path. Even mid-level managers and administrative positions can allow for home ownership.
Toronto has a public transit system that allows people to live in the suburbs and commute into the city to work. Many people take the GO train from Oshawa, Barrie, Mississauga, Brampton (etc) into the city to work. Without the public transit, people would not be able to get to work or afford homes. However, this also drives up the price for homes in the suburbs. Most detached homes in commuter areas of Toronto sell for more than $500,000.
Other cities in Ontario such as Ottawa, London, Kitchener, and Hamilton have also seen their average home price increase significantly over the past 10 years. Although real estate in the other cities of Ontario have not increased as fast as Toronto.
Another reason for a hot real estate market in Toronto is the vast number of real estate agents. There are approximately 30,000 real estate agents in Toronto. There is 1 agent for every 4 homes sold and approximately 1 agent for every 166 people in Toronto. The high volume of agents can keep the market inflated. The real estate agent’s job is to find buyers and sellers and bring them together. When you have that many agents talking to people and convincing them that it’s a good time to buy, then the market will be active.
In the 1990′s Toronto had a real estate crash where prices dropped from $270,000 to $200,000. However, since then Toronto’s housing market has increased every year. Who knows what is in store for the Toronto real estate market? The market might continue to go up, it might drop, or it might remain flat. Regardless, Toronto has many great reasons to make it home, and to buy a home!
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Real estate news in Canada including buy and sell information, local market updates, guides, tips for Canadians in the real estate market.