Toronto Real Estate Market
Despite dire predictions that pile up year after year, and despite the recent hit to oil prices and by extension Alberta house prices, Toronto real estate, seems to still be flying high. A recent summary article in the Huff Post Business Canada Page highlighted some of the following information:
January sales figures released by the Toronto Real Estate Board (TREB) on Wednesday show sales and prices growing throughout the Greater Toronto Area (GTA) in January, compared to the previous year.
The GTA saw 4,355 sales last month, compared to 4,103 last year (a jump of six per cent), with the average price rising from $526,965 to $552,575.
The City of Toronto (referenced as the “416″ area code) accounted for 1,561 of those sales, while the rest of the region (shown as the “905″ area code) saw 2,794 homes sold.
New listings in the GTA also grew 9.5 per cent year-over-year, from 8,762 to 9,596.
In light of these incredibly positive facts and figures, you might be excused by thinking that you simply can’t go wrong by investing in any Toronto real estate. Unfortunately that would be wrong, and a seriously dangerous perspective to take into the market as a buyer. The figures that get quoted are averages or medians to start with, and they are quoting the sale price, not what happens next!
When you buy a home, whether you are a first time home buyer or have been in the market for years, you are of course concerned with capital appreciation or at least the likelihood of it. However you evaluation shouldn’t stop there. In a hot market many people get caught up in competitive bid processes and fail to due the proper due diligence for an investment of this size.
The critical method of your due diligence should be a thorough home inspection done by an OAHI qualified inspector. Many years after the glow of your new home purchase has faded you will be dealing with the issues and problems that come with any long term property ownership. It is always better to be forewarned and forearmed with all the information a qualified inspector can provide you with BEFORE you sign on the dotted line.