Toronto Real Estate Market Trends 2013
Here is the Million Dollar Question, “What will happen to the Toronto real estate market in 2013?”
Here are my thoughts.
1. In 2013, 300,000 legal new immigrants will be admitted into Canada, and perhaps an additional 30,000-40,000 refugees will be seeking legal admission into Canada. With 60% moving into the GTA, that is a large group of consumers requiring housing, whether it be purchasing or renting. In addition, there is a cross-Canada immigration, as Canadians from other Provinces are drawn to the GTA due to the many opportunities here.
2. As young people enter the rental market, that creates demand, shrinking inventory and rising rental rates, a trend we saw in 2012, which will continue in 2013.
3. As rental rates increase and mortgage rates remain at historic low levels, more first time buyers enter the market as the difference between the cost of renting and owning becomes negligible.
4. Increasing cost of land. As they say, “Have you got yours yet? We are not making any more.” The “big city prices” have already impacted Newmarket, Whitby, and areas west. Now builders are looking past those areas to create Toronto’s new “bedroom communities”.
5. Higher construction costs.
a) Material. Copper, iron, lumber and sheet rock have all gone up and are continuing to increase, as are all construction materials.
b) Labour. As the cost of living increases and demand for construction workers continues labour costs continue to increase.
These 5 major factors will continue to be the driving force behind the real estate activity in the GTA in 2013.
2013 real estate sales will start out slowly as it does every January and February, and by the beginning of March will be into full swing as we enter the Spring market.
I believe that the total number of transactions in 2013 will be similar to 2012, with an average price increase of 5% by the end of the year.
2013, lots of sales, lots of activity, another good year for Toronto real estate!
Broker of Record
Re/Max Realtron Realty Inc.
# 1 on TREB 20111 (most transactions)