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We need more homes in Toronto to meet the exuberant demand. If you’ve been following the news, you must be aware of the panic in the market regarding the severe shortage of homes. Here’s a quick breakdown of the problem and how that may affect you.
As homeowners are unwilling to list their homes, homebuyers are struggling with low inventory and high prices. Even newer constructions are failing to fill the gap. Experts predict that Ontario needs at least a million more homes over the next decade to keep up with its population growth. The current deficit stands somewhere at 65,000.
And while new home constructions are increasing rapidly along the country, Toronto is hardly catching up. In 2021, Toronto’s home starts rose only by 1.4% compared to the 2015 to 2019 average.
In its latest report, the city hall planning, and housing committee has proposed making neighbourhoods denser by adding more housing options in yellow belt Toronto neighbourhoods – those that only allow detached or semi-detached homes - to tackle the rising demand. Meanwhile, first-time home buyers are looking deep into neighbourhoods outside Toronto and even Ontario to find the right homes, while investors take a lead in the GTA. Days on market is decreasing each month and now stands at just 8-15 days.
While some experts suggest that prices might be stabilizing, others suggest further tightening of the market. No matter what happens, as I stated in my last email, a policy change seems to be on its way.
If you have been closely observing the market and waiting for the right time to list, this just might be it. If you feel you still aren’t ready, I’d suggest get a precise home evaluation to understand what the right strategy could be for you. You can also do a continuous evaluation of sold prices in your neighbourhood with our free tool.
Stay informed and don’t let the right time pass you by!