The biggest news story in the city of Toronto is its lack of affordable housing, as prices continue to increase and push people out of the core. As a result, the average rent for a 1-bedroom property in the city rose 10.9% from a year ago. How will the market in 2018 react to the new stress test, mortgage guidelines and new interest rate hike remains to be seen. In addition to the growing number of condo towers being built, Toronto is seeing multiple large scale mega-developments being built or proposed scattered throughout the city. More specifically, the east end of the city’s waterfront will be significantly transformed with two major developments, Quayside and First Gulf’s East Harbour developments. Combined they will feature 72 acres of redevelopment, and make the First Gulf East Harbour development the largest commercial project in Canada, with 12 million square feet of mixed-office, retail and institutional uses.
Using the latest market data, it’s clear that the median home price is still increasing in the city. It currently sits at $590,000, which is a year-over-year increase of nearly 10%. Perhaps not coincidentally, there was a month-over-month decline in the number of properties sold, falling from 2978 to 1970 homes. The average number of days on market for a property ticked up as well from 21 days to 24.