Multiple offers become commonplace again
Greater Toronto Area Homes selling to Immigrants
Neil Sharma
Canadian Real Estate Wealth
Inbound migration to the Greater Toronto Area should allay fears real estate investors may have about how profitable the region’s housing stock is.
“We used to take 200,000 to 250,000 new immigrants, and 100,000 would come to the GTA,” said Cameron Forbes, general manager and broker of REMAX Realtron Realty. “Immigration has increased to 350,000, so now about 140,000 people are settling in the GTA every year. If you think about two to three people per household, that’s 30,000 to 40,000 new units of additional housing each year, and that’s what’s being constructed now. Fifteen thousand ground-oriented homes, including detached, semi-detached and townhouses, and about 20-25,000 new condos each year.”
“You can’t recreate the land, so there will be a higher average price increase for detached homes. There will be a good return,” continued Forbes. “It’s just a matter of affordability. They’re at a price point where not a lot of people can afford to buy them anymore in the 416, but it would be a great investment because they’ll go up in price for the foreseeable future and into the long-term.”
According to Canadian Real Estate Association statistics released for the month of August, unit sales are up 8.5% this year over August 2017, and the average selling price of $765,270 is also a 4.7% boost over last year.
Forbes indicated that CREA’s stats are in line with REMAX’s forecasts, which show a balanced market in which buyers can take their time deciding whether or not to tender offers, and also one in which sellers aren’t buckling under the weight of multiple offers.
“The stats coming out on a monthly basis were slow until May, and that’s the result of the foreign buyer speculation tax,” he said. “We’re seeing that the market is good, but it’s been slower than the fast pace we’ve become accustomed to for the last five, 10 years. In those areas that have shown the greatest weakness—the outer parts of the 905—we’re seeing renewed buyer confidence and renewed sales and price increases in the areas that had seen the greatest slowdown.”
According to Cam Woolfrey, a sales representative with Royal LePage Signature, multiple offers are still commonplace in downtown Toronto.
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