By Ilan Joseph, Broker, ABR®, e-PRO®, AMP® | TopTorontoAgent.ca
February 10, 2014 | © All rights reserved
Yes Toronto real estate prices are high, but read below and you will quickly agree with me that they are actually cheap!
Since 2005, Toronto has seen home values progressively rise due in large part to then Premier Dalton McGuintys’ signing into law the Green Belt Act to protect Ontario’s dwindling agricultural lands from urban sprawl. While this was a noble cause, it has created its fair share of consequences, namely the artificial inflation of house prices in the greater Toronto area.
You see, when land-use is limited, developers must look towards existing urban centres for redevelopment rather than seeking out vacant plots of land. Since the GTA has virtually tapped out on all its vacant land, the price of development has quickly skyrocketed with developers aggressively competing for the limited supply of available land that does become available.
Many of the developers who once built OUTWARDS in the suburbs, have now turned back towards the city to build UPWARDS. Toronto is expensive and it will only get more so as fewer parking lots and strips of old buildings become available to developers looking to build their massive towers. You better believe prices in the mid to long term have only one way to go…
Now this is just one reason why I believe prices will continue to soar. Another is the decade long condo boom that has seen hundreds of new towers line Toronto’s skyline, many of which are filled with studio and 1 bedroom units under 600 square feet.
[caption id="attachment_3852" align="aligncenter" width="719"]
Artist rendering of what Toronto will look like in 2020[/caption]
Let’s role play for a moment, picture yourself as a 25 year old who bought or rented a one bedroom condo a few years back. You have since met your soul-mate and made the decision to get married. First, you get a dog, and then came your first-born child. Your once spacious pad has quickly turned into any families nightmare. A home that’s far too small to support your growing family’s needs.
Can you imagine how many condo owners are in the same or similar situation?
We are starting to feel the effects of this “coming of age” from our condo sector. An evolution of single-units, morphing into family-units who want (who NEED) more space – perhaps even a yard and a basement for their kids to have some space to play in.
Since Toronto “the expensive” is out of reach for most, these young couples and families look over the horizon at the suburbs, to places like Thornhill and Vaughan which are some of the fastest growing cities in the GTA.
Our suburbs in Thornhill and Vaughan have seen prices climb much faster than the national average and we're only just seeing the tip of the iceberg of what’s to come. A wave of ex-condo owners will soon be NEEDING a larger floor-plan and will be forced out of the city into your suburban neighbourhoods.
While you might think Toronto real estate prices are high, I think they’re cheap for what lies ahead.
If you have any questions about the home buying process or would like some information about the Toronto, Vaughan or Thornhill real estate market, feel free to contact me.
CONTACT ILAN NOW FOR A MORE PERSONALISED SEARCH EXPERIENCE!
Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto, Thornhill and Vaughan real estate team.
You can find him on LinkedIn, Twitter, YouTube and Google+.
For over 10 years, Ilan has provided more than 1550 buyers and sellers valued advice and service, enabling them to reach their real estate goals.
He’s kind of like the Bruce Willis of real estate.