Market Overview of the GTA.
We received a very interesting read from Baker Real Estate outlining just why Toronto is still an ideal city to invest in. It started with the New Home Sales by Product Type. Did you know in 2000, 43% of new home sales went to Detached Homes and 23% to Apartment. Fast forward 12 years to 2012 and 51% of new home sales went to Apartments ie Condos and only 26% to Detached. With 1 bedroom plus dens leading the way with consumers, then 1 bedrooms, followed closely by 2 bedrooms. Looking forward to 2013 and with population growth being close to all time highs there is demand for housing to keep pace with it. The report also states that in 2012 Toronto attracted 120,000 new comers! The prediction for the GTA in the next 2 decades is that it will be one of the fastest growing in the region with the population to grow 44.6% with 9.2mil in the GTA by 2036. The GTA is to grow up not out meaning more highrise condo options in the city being more desirable than larger options far from the city. Provincial intensification policies encourage a more sustainable approach to urban development and is behind the shift from low density to high density claiming home buyers want to choose the type of home that suits their lifestyle through the various stages of life and choices in the low rise market is diminishing. Since 2007 the average PSF of condos is up 50%. It is worth noting that in the past 30 years the worst national decline of home values was just 4.6%. One more thing for us Canadians to brag about and also why it is such a good idea to invest in this great Country is for 5 years in a row the World Economic Forum ranked Canada's banks as the most sound in the World.