Here's What Toronto Homebuyers Could Expect In The Next 5 Years With The Housing Market
There has been a lot happening with Toronto's real estate lately.
From average home prices dropping last month to benchmark costs for condos shooting to the stars during the past year, homebuyers may be wondering what the future holds for the historically expensive real estate market in the 6ix.
According to an analysis from local real estate professionals at Strata.ca, one of the biggest factors in property prices seeing an increase is more people moving to Toronto.
It noted that people have been looking to move into places with more amenities to accommodate a work-from-home lifestyle during the pandemic has also driven up market costs.
How the NDP-Liberal Coalition could affect the market
Strata.ca suspect that the recent partnership between the Liberal Party and the NDP will have some positive effects on the market in the next five years.
Those effects are said to come from the news policies introduced by this partnership that would prioritize the following motions:
- Establishing a "Homebuyers Bill of Rights" by the end of 2023, which the NDP said on their website will tackle the "financialization of the housing market."
- Launching the Housing Accelerator Fund that Strata.ca claims would allow municipalities to be able to quickly build housing
- Extending the Rapid Housing Initiative for an extra year, which is a program that helps expedite affordable housing
Where homebuyers might look next
"Condos with reasonable fees and parking will be the properties that offer the biggest return on investment in the next five years," said Forte in the analysis.
Though only some types of condos will "yield the highest return on investment", according to Strata.ca real estate professional, Osman Omaid.
"A reasonably priced one bedroom or one bedroom plus den in up-and-coming neighbourhoods will offer great appreciation between 2025 and 2030," expressed Omaid.
Condos with one bedroom and a den in Flemingdon Park, or one-bedroom condos in Regent Park, were suggested by Omaid to be potentially good investments.
"Both neighbourhoods are flourishing in terms of new builds or added amenities currently under construction. In fact, Flemingdon Park Station is being built as part of a new transit project called The Ontario Line — which is expected to increase overall property values in the surrounding area," founder of Strata.ca, Robert Van Rhijn, wrote in the analysis.
But the best property that'll have a rising property value would be detached homes in desirable areas, said Forte.
“Its long-term value will not only hold but also increase, especially when it hits the 10-year milestone," he said.
