Real Estate Market Pulse: Greater Toronto and Vancouver Insights

Credits: Home sales in Toronto, Vancouver down in March

Home Sales Dip, but Prices Rise in Canada's Hottest Markets

The real estate markets in Toronto and Vancouver, two of Canada's most sought-after cities, continue to capture attention with their latest performance. According to reports from the Toronto Regional Real Estate Board (TRREB) and the Greater Vancouver Real Estate Board, both markets experienced a slight decline in home sales in March compared to the previous year. However, the underlying demand and competition among buyers ensured that average home prices maintained an upward trajectory.

Greater Toronto: Moderate Price Growth Amid Affordability Challenges

In the Greater Toronto Area (GTA), 6,560 homes changed hands in March, marking a 4.5% decrease from the same period last year. Despite this dip in sales, the average selling price rose by 1.3% year-over-year, reaching a staggering $1,121,615. TRREB attributed the sales slowdown partly to the statutory Good Friday holiday falling within March this year rather than April.

While the price growth may seem moderate, it highlights the ongoing affordability challenges faced by prospective buyers in the Toronto area. Chris Kapches, President and CEO of Chestnut Park Real Estate Limited, acknowledged this concern, stating, "Population growth has become so prominent in terms of driving this marketplace, and driving the demand, that prices have stayed high, while at the same time, sales have fallen off because of affordability."

Kapches advised clients to consider exploring more affordable options farther out in the GTA or even in other provinces if they wish to remain in the vicinity. Areas like Scarborough were cited as potential alternatives for more reasonably priced condominium apartments.

Greater Vancouver: Sellers' Market Territory Looms

In the Greater Vancouver region, the real estate board reported 2,415 home sales in March, a 4.7% decrease from the previous year. However, the total number of homes listed for sale rose by 22.5% year-over-year, reaching 10,552 units, which is 6.3% above the 10-year seasonal average.

Andrew Lis, the board's director of economics and data analytics, noted that "the overall market balance continues inching deeper into sellers' market territory," especially for buyers. The composite benchmark home price in the region stood at $1,196,800, up 4.5% from a year ago and 1.1% higher than in February.

Outlook: Anticipating Lower Borrowing Costs and Increased Demand

Looking ahead, both TRREB and industry experts anticipate a surge in demand for ownership housing as borrowing costs potentially decline in the coming months...

As the real estate landscape continues to evolve, prospective buyers and investors alike are advised to stay informed and adapt their strategies accordingly.

Why Multifamily Rentals are an Attractive Investment Now

Amid the shifting housing market dynamics, multifamily rental properties have emerged as a compelling investment opportunity. With affordability challenges driving more individuals towards renting, the demand for quality rental units continues to rise. Multifamily properties offer several advantages, including:

• Steady Cash Flow: Rental income from multiple units provides a consistent stream of cash flow, enhancing overall portfolio stability.
• Economies of Scale: Operating costs are typically lower on a per-unit basis compared to single-family rentals, improving profitability.
• Appreciation Potential: Well-managed multifamily properties in desirable locations tend to appreciate over time, offering long-term capital gains.
• Tax Benefits: Investors can leverage various tax deductions associated with property ownership and operations.
• Diversification: Adding multifamily rentals to a portfolio can diversify risk and exposure to different market segments.

Exclusive In-Person Vancouver Event: Explore Western Canadian Opportunities

I'm thrilled to extend a personal invitation to you for an upcoming in-person presentation that dives deeper into the real estate and private capital marketplace in Western Canada. Presented by Axcess Capital Advisors in partnership with Legacy Investment, this presentation sheds light on the lucrative prospects of investing in multifamily properties with investment minimums as low as $5,000.

Join me, Adrian C. Spitters, along with other industry experts, on Wednesday, April 17, from 5:45 PM PST to 7 PM PST at the Terminal City Club, Vancouver, B.C. Together, we'll explore Legacy Investment's property portfolio, growth strategies, and forthcoming acquisitions, providing valuable insights into the Western Canadian real estate market.

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Seize this chance to position yourself at the forefront of multifamily investment in the region.

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