Toronto’s real estate market will likely feel the impact of the rising cost of living, according to RE/MAX’s report released Wednesday.
The company notes the city will also likely experience increased demand from a growing population, impacts of unemployment status, the mortgage stress test and housing diversification as it relates to “the missing middle.”
RE/MAX said the missing middle includes duplexes, triplexes, quadplexes, townhomes, cottage courts, and laneway homes.I “It’s the middle ground between multi-family apartments or condos and single-family homes,” RE/MAX said.
The company’s Canadian Real Estate Industry Trends Report for 2023 shows location is likely to remain a key driver of demand in the Greater Toronto Area.
Prime locations, including the core and around Yonge and Bloor streets, are unlikely to experience significant price and demand decreases, RE/MAX said.
However, areas that do not offer diversity in liveability, including access to transportation, green space, walkability, and access to restaurants, are more likely to see a dip in demand.
“Interest rates rising have provided a much-needed price adjustment in the GTA that has allowed many move-up and investment buyers to benefit – particularly those that are making moves from city cores to surrounding areas like Markham, Richmond Hill, Pickering and Ajax,” the report reads.
TIPS FOR BUYERS IN TORONTO
RE/MAX notes that fewer competitors does not mean a lower deposit.
Homes in most market areas of the GTA that are priced correctly will continue to generate multiple offers, according to the report. RE/MAX said this highlights the importance of getting a mortgage commitment and inspection done in advance of the offer.
TIPS FOR SELLERS IN TORONTO
The first half of the year is more likely to offer favourable conditions to sellers, due to less competition and economic headwinds expected in the second half of 2023, according to the report.
“As a seller, it is important to focus on the difference in value between the property being sold and purchased; great opportunities exist to “move-up” when making the switch between many markets and properties (I.e. moving from a condo in Downtown Toronto to a detached house in Hamilton),” the report said.
RE/MAX notes that staging homes continues to be a best practice with significant impact across all markets.