As Canada’s most populated city, the Toronto housing market has been hot for decades. But the pandemic has put the market into even more of a frenzy over the past year due to families looking to buy a bigger house while working from home, searching for more outdoor space, or seeking a new neighbourhood. With all the attention on the housing market, it can be daunting to think about buying a house in Toronto, especially for first-time home buyers. To help, we’ve answered a few commonly asked questions.
Should I wait to buy a house in Toronto?
With record home sale prices in the city, and across Canada, you may think it’s best to wait for the market to cool off. However, waiting may not be your best option—when looking at the long-term picture, the market has grown consistently for the past 20 years, and Toronto has a housing supply issue which continues to drive demand. While it could be tempting to wait, you could end up being priced out of the market in the future. For more information, read our financial report on The Runaway Home.
How much money do I need to buy a house in Toronto?
There are many financial aspects to consider when it comes to breaking down your budget for a home, including mortgage interest rates and your pre-approval, your savings for a down payment, the type of property you’re looking for, and which neighbourhood you’d like to live in. You’ll also want to keep closing costs in mind, such as taxes and insurance.
While it can be difficult to pinpoint a number, the average selling price for a detached home in Toronto in April was $1.7 million, while condos sold on average for $727,137. Your best bet is to work with an experienced real estate agent in Toronto to discuss the best home option for you.
Should I invest in Toronto real estate?
As a world-class city and burgeoning tech hub, real estate in Toronto, and especially rental inventory, should continue to be in high demand. It can be a good idea to invest now if you can afford to, since you can either use the home to live in while paying off your mortgage instead of rent, or to use as a rental property since rent prices are rising.
Ready to discuss your Toronto real estate options with a professional? Meet the Declute team today and get started.