Real Estate prices in the Toronto area have reached a record high, with prices rising above the million dollar mark, in 2017, reflecting a continual increase in the housing market. Supply and demand is the main cause affecting trends like these, and buying practices are a contributing factor. Those already involved in the market are taking to new trends, like renovations, upgrades and flipping houses, which leads to a steep increase in resale value. As well, multiple property owners are investing in the market via buying and selling techniques which contribute to inflation, and creates a greater demand for first-time buyers.
For example, a recent, moderate, three-bedroom home on the market for a minimal amount of time was priced at a fair, market value. Typical listings like these often result in bidding wars, with multiple offers coming in, each offer a bit higher than the next, in order for home buying hopefuls to secure a decent place, to build a life together. In this scenario, the influx of offers resulted in an increase of approximately $100 000 over and above the asking price. Situations like these result in multi-million dollar sales, which make for stiff competition, among investors.
New home owners are experiencing an increasingly difficult time getting into the housing market, as they are unable to afford the ever-increasing, high prices for modest homes, especially in relation to positions held in metropolitan areas, like Toronto. The average salary of those living in the city is incongruent with the housing prices in the same area. In Toronto, most residents are employed in such fields as business, sales and trades, the latter being the most lucrative of career choices, with a wide variation (a.k.a. gap) in salaries. Here are the typical salaries of those looking to get into the market on a first-time basis:
- Business Professionals - $55 000 per year
- Sales Professionals - $45 000 per year
- Trades Professionals - $90 000 per year
Despite discouragement in securing a place to build dreams upon, the city is taking a closer look at what is happening in this sector of the city. Real Estate trends are being studied, and the Mayor and colleagues are discussing plans for slowing the continual increase. For the summer months, however, prices will likely continue to rise; however, Toronto residents can take comfort in the fact that protocols are being developed to allow for more comfortable living prices, in relation to the jobs held in the City.
Published by Jennica B.