Because of the Condo Boom, Toronto has become a more compact and intesively developed compact City. We have done this by the increased development of both condo and office space near subway lines, as has happened in North York Centre, Yonge and Eglinton, the Downtown Core and to a lesser extent, Consumers Road on the Sheppard Line and Scarborough, with Scarborough Town Centre. The "city centres" of North York, the Core and Yonge and Eglinton have a mix of offices and high rise condos. The construction of more condos in the old downtown creates has created a similar outcome. People can be close to work, home and Quality of Life Support Services. The Sheppard line is starting to see intensive construction as the Concard Park Place Project heats up along with Emerald City and Dream Tower, not to mention Bayview Village and New York Towers.
New Trends in Condo Buying Emerging in the Toronto Area
A few new trends to watch out for in the Toronto area when it comes to buying homes as well as buying condos. When it comes to buying homes, the latest tactic is to put a property which had previously been listed on the MLS system, on a bidding site, or list through an auction house to get buyers, sending the price of single detached homes soaring.
As for condos the latest buying technique is the new trend with regards to micro housing, or micro condo living. And we’re seeing now, specifically designed condos to meet that purpose. Another new trend to look out for is the lack of supply in the purpose built rental housing market in Toronto. Even as new condos come online there remains a shortage of apartments built specific to that purpose, so condo rentals have increased even as vacancy climbs, rentals rates do as well.
Busy Condo Market Boosts Toronto Home Sales
With fewer homes in the detached category available in Toronto, new home buyers seem to be opting for new condos, with sales heading forward at a rocket pace last month. Sales of Existing Homes in the Toronto area moved up by a whopping 2.1% in February 2014, and that is compared to the same time period last year. That was mainly due to a 12.5% increase in the sales of condos within the city so stated by the Toronto Real Estate Board. That will contrasts with the sales declines that occurred in townhomes, detached and semi-detached housing during the month, which was mainly due to a constrained supply of those housing types.
The Canadian Home Mortage Corporation (CMHC) set to alter Mortgage Insurance Rates
The federal agency which regulates mortgage insurance in Canada is set to alter the rates which is charges new home buyers to insure their mortgages against the risk of default. These premiums which new homeowners must pay to get CMHC insurance may also impact the ability of homebuyers to purchase their homes. The federal government has been trying for quite some time to reign in the Toronto and Vancouver Housing markets where the average cost of a single family detached home has now reached over $1 million dollars.
RBC Financial Group Warns, that Rising Mortgage Rates will
Make Home Ownership Unaffordable for Most Canadians.
The Royal Bank of Canada is warning that the
tide of rising interest rates will make home ownership for most Canadians
unaffordable. This will be very true in Toronto and Vancouver where home prices
have recently climbed over $1 Million dollars for a single family detached
home. Servicing of interest related to
home ownership such as mortgage rates, as well as mortgage insurance are set to
rise, or have been rising over the past year. The longer term interest rates are
moving at such a pace that the incomes of most Canadians will not be able to
keep up. The good news however is that
the rising interest rates foretell a
improving economy for most Canadians looking to improve their financial
situation
Toronto has become the model city, for all the ills, and the doomsayers regarding our crumbling infastrustructure new lines, like the Eglinton LRT Crosstown are moving us in a positive fashion towards a more sustainable and prosperous future. The option of being able to walk to work or cycle if needed, is optimial for growth, and we can continue to grow other North American cities cannot, due to a tight cohesive core, and similar style communities on our fringe. This way our road capaicty is reserved for those that need it, especially those transporting heavy goods and materials in and out of the city. The goal, is to not need a car in the core, to run your daily duties period. Toronto is close to achieving this critical mass.
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