Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Toronto real estate will always be a great investment

Paul Etherington – Toronto Sun
President, Toronto Real Estate Board

Raise the topic of real estate at any gathering this summer and the question as to whether housing values are well founded routinely arises.

Generally, most Canadians feel very positive about the housing market outlook, as reflected in the results of a recently reported Bloomberg Nanos Canadian Confidence Index, a weekly survey that gauges the mood of people from coast to coast. It found that respondents’ views as to the value of housing are the most optimistic since 2008.

Comment: People feel positive, experts don’t. Yet the people have been right, values keep rising. All “expert” predictions of doom have been wrong.

From my perspective, the results of this survey are right on the mark. In fact, it’s easy to see how much of a strong long-term investment real estate represents by taking a look back at our city’s history.

The average selling price for July 2014 sales was $550,700 – up by 7.5% compared to July 2013. Looking back 18 years, to July 1996, the average price was $199,856, reflecting an increase of 175%.

Comment: And looking back to 1966, there have only been 6 years that have seen house prices fall. And they were all clustered around the bubble of the late 1980s and early 1990s. So 43 out of 49 years have seen prices rise. Through recessions (1980-1982 when prices rose 26%), high mortgage rates (1981-1982 when mortgage rates were as high as 21.46% and prices rose 6%), stock market crashes (1987 or 2008, among others, when prices rose 21% and 4% respectively), terrorism (9/11 which saw prices rise 9% by the end of 2002) and more. And people cry bubble now, look at those annual increases from 30 years ago!

Toronto real estate investment
While it’s important to note that this isn’t a direct apples to apples comparison – geographic boundaries and the mix of housing types have changed over time – it does illustrate an indisputable truth: a sensible investment in housing provides strong long-term returns.

Reaching even farther back, 48 years, to 1966, the average price for a new home was $22,500.  Today, a parking space in a downtown condominium can easily sell for more than the cost of a home in 1966. Coincidentally, the Toronto Real Estate Board’s 1966 President Jack Key shared thoughts that year that could have helped astute buyers predict our city’s condo boom.

“If you take into consideration that there will be an acceleration in growth rate in the next few years, and less than three-quarters of our vacant land is suitable for development, at most we have only five years’ supply of land available within Metro’s boundaries,” Key said.

A Toronto home purchased 78 years ago, in 1936, could have been snapped up for approximately $8,000.

Comment: My grandmother bought her house in 1954 near Keele and Lawrence for $5,000. But everyone seems to forget that everything rise. Movies were a nickel back then. Cars started around $1,500. The average income was just $4,000. I used to buy chocolate bars for $0.43 when I was a kid, now they are more than a dollar. Everything goes up, that is just life.

The President of our association that year, James McWilliams, told a local daily newspaper, “There is no shortage (of housing) between $7,000 and $9,000… but a decided lack in the class between $10,000 and $12,000 in the low tax areas.”

Today of course, those “northerly districts” would likely be considered the uptown area of our city’s core and the grandchildren or great grandchildren of a buyer from that era are, in many cases, used to prices closer to one million dollars rather than $10,000.

Like any market, housing will experience cycles in which sales and prices wax and wane, but in the long-term the message is clear: making the move to home ownership, regardless of where you choose to call home in the GTA, has offered extremely favourable results.

Comment: Oddly enough, real estate seems to have escaped any sort of rise-and-fall cycle. Outside of a brief period from 1990-1996, Toronto real estate prices have only ever gone up since 1966.

In a recent poll conducted by Ipsos Reid on behalf of the Ontario Real Estate Association, 82% of Ontarians agree that real estate is a good investment. And, as I have noted previously, a home is the only investment in which you can live while it appreciates.

—————————————————————————————————–
Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto real estate agent with Century 21 Regal Realty.
He did not write these articles, he just reproduces them here for people who
are interested in Toronto real estate. He does not work for any builders.

—————————————————————————————————–

Summary
Toronto real estate will always be a great investment
Article Name
Toronto real estate will always be a great investment
Description
Raise the topic of Toronto real estate at any gathering this summer and the question as to whether housing values are well founded routinely arises.

Leave a Reply

Your email address will not be published. Required fields are marked *