A recently issued report by the Canada Mortgage and Housing Corporation (CMHC) revealed that Toronto real estate investors should expect of the same from the market in the next two years. The CMHC’s two-year Housing Market Outlook revealed that the real estate market will shift subtly in regards to both home ownership and rental housing. Here’s what Toronto real estate investors and those looking to break into the market should know about the two-year outlook on Toronto real estate.
Don’t hesitate – there’s nowhere to go but up
With the two-year outlook showing that the CMHC believes the market will continue on its current trajectory, there may be no better time than now for investors to jump into the Toronto real estate market. Projections say that real estate demand will continue to outweigh supply thanks to a continually growing population and positive job prospects, putting a great deal of power in the hands of landlords and giving a wealth of opportunities to prospective investors. This means that Toronto area property prices will continue to fall within the same range that they’re currently in – the CMHC reports that they will continue to rise at the rate of inflation for at least the next two years.
If you’re eagerly waiting to take advantage of a significant price drop before investing in the market, the data says that you probably shouldn’t hold your breath. In fact, current trends indicate that demand is so high that some Toronto properties are being sold for well over their asking price. Higher real estate prices are likely to slow down the sale of real estate in the city, with many potential investors losing out on lucrative long-term investments as a result. Investors who don’t hesitate to invest in the market have the opportunity to immediately begin renting out their properties to the countless citizens of Toronto currently looking for a suitable home, and avoiding the possibility that prices continue to rise as demand increases.
A booming city with room to grow
The Toronto market has continued to grow consistently with no signs of stopping or slowing, thanks largely to the city’s status as an economic powerhouse for the country and a wealth of career opportunities in many industries. Canadians from around the country have also looked towards the city of Toronto when looking to spread their wings, and with rising immigration rates and ever-growing senior and millennial populations, the demand for quality housing in Toronto has nowhere to go but up – literally. All signs point to an emphasis on high rise buildings being erected throughout the city to help meet the high demand – as a result, low rise and detached homes will continue to see less and less activity due to space restrictions within in the city.
Prospective Toronto real estate investors should look at the CMHC’s two-year outlook as both a warning and an opportunity – waiting for prices to drop may not be the recommended course of action to take. With a consistently rising population and real estate demand growing alongside it, you may not have the luxury of waiting this one out if you’re looking to invest.
For more information about the property management and realty services offered by the experienced team at Highgate Properties, contact us today.