ABC NEWS ARTICLE - CANADIAN HOUSING MARKET 2016

http://www.crea.ca/content/national-average-price-map

Real Estate com Matthew Fernandes

This week, we continue our weekly real estate column featuring one of Toronto’s expert realtors, Matthew Fernandes. He will offer his projection for the real estate market in Toronto for 2016.  Matthew has been licensed with Sutton Group Realty for over six years. He has won multiple awards, including the Sutton Platinum Award.

Projection for Toronto in 2016

"The overall Canadian real estate market continues to be extremely healthy and growing. Of course, real estate has local trends and therefore every city will have different growth rates, price points, and demands. If we look at Toronto specifically, it continues to astonish most people in the way that prices are going. More specifically, for the free hold properties (houses and townhomes), there is an imbalance in the supply and demand where we are seeing a very strong demand and a continuation of low supply. Every neighbourhood is unique and each month is different. If we look at the amount of freehold homes being built in Toronto, there really isn't much at all. Anything that is accessible to transit and in Toronto continues to be a very desirable choice for many, both for homeowners and investors." says Matthew Fernandes

Toronto Catches the World’s Eye

"If we begin to look at the people who are purchasing these free hold properties, we are seeing a lot of foreign investors. Why? Toronto's reputation is becoming known worldwide as a safe place to live, both in terms of security and economics. Toronto is a place where people with excess money can invest in a safe investment.  Mind you, it only takes a few months for things to change, both locally and worldwide. Therefore it is still extremely important to proceed with caution and not overstress any sort of purchase you will be making." says Matthew Fernandes 

Other Canadian Cities by Comparison

"Edmonton’s economy experienced years of prosperity and growth. In the last year, their real estate market has declined and continues to slowly drop because of the high volume of lost jobs related to the oil industry. Edmonton’s supply of free hold homes currently outweighs its demand, forcing housing prices to drop significantly.

The strongest real estate market in Canada belongs to Vancouver, where the supply/demand ratios are believe it or not, more imbalanced than Toronto. It is also seeing a huge influence of foreign investment and very low supply, due to constricted growth on the coastal city.  Vancouver also experiences the most temperate climate in the country leading many to flock to its more comfortable coastlines and beaches.

In terms of cities close to Toronto, municipalities such as Hamilton and Markham are continuing to grow because their level of affordability is pushing buyers out of Toronto into GTA cities.  You can get more for your money in terms of space, and a house that doesn’t necessarily need much renovation. Outside of Toronto is where you can see builders building freehold homes and at a much more accessible price." says Matthew Fernandes

Condos continue to be a Suitable Option

"Condos, as we all know, are being excessively built in Toronto. The condo market is still doing very well because of the demand to be able to live in the city.  We have more supply to offset the extreme price growth as we see in the housing market.  As a result, condo prices become more accessible especially to first time homebuyers and those wanting to move into the city. Whether Toronto’s condo market will regress remains to be seen. Nevertheless, condos provide a fitting opportunity for those wanting to live in the city." Says Matthew Fernandes