Toronto suburban housing demand surging

Toronto’s real estate market seems to be losing steam as more and more buyers are opting to neighbouring suburban areas with want of owning single-family homes whereas sellers are whetted to be out of downtown condos.

Despite the fact that condos are abundant in supply however the demand for single-detached family homes is at an all-time high. This has created a disconnect between supply and demand in the current real estate market, especially in GTA.

Regardless of tons of new pre-construction projects, the supply and availability for detached single family homes, semi-detached, and townhomes are pretty low.

As per data, the average selling price of single-family homes as compared to the condo market is way high across the GTA. There seems to be a shift in preferences during the COVID-19 crisis. Work from home culture, outdoor open space as well as privacy are the prime factors affecting the real estate market parameters.

Statistics narrate that the condos in recent years used to sell within 3-5 days but now the listings sale cycle is much longer i.e. 30 to 60 days. The short-term renting rules in September also escalated the selling spree.

Amid COVD-19, renters like students, tourists, and young professionals are very rare to find. Virtual learning, ongoing joblessness, and travel restrictions are fuelling up the crisis of the condo rental market.

Attractive borrowing cost is also a prime factor for the ongoing buying side for the real estate market. And so far, there seems to be no indication for any type of rate increase in the near future.

The government of Canada has announced a plan to support economic recovery through immigration, which has a set target of 400,000 people each year for the next three years. All these immigrants need a place to live whether rental or ownership, which may further strengthen the housing market.

Whereas some Chief economists like Benjamin Tal are predicting that the housing market will slow down and according to him this optimism is not going to last for too long.

MD Sahota