Could 2023 be the year of the buyer in Toronto? If so, what are the best opportunities for home buyers in Toronto?
We detail a few high-opportunity neighbourhoods for buyers to capitalize on in the coming years! Note that we aren’t (necessarily) speaking of the “cheapest” areas, as those will already be in demand – after all, there is typically a lot of demand/interest in those areas, to begin with. We cover some areas that you may not have considered.
The drop in home values and higher variable interest rates have culminated in a never before seen scenario in Toronto. Well, maybe we saw something like this in the early 1990s. But that lasted nearly ten years. We DO NOT expect this market to last very long. This means that those buyers who act in the next year to a year and a half should fare very well.
Why don’t we think this market will drag on for a decade? There is far too much demand due to the large influx of new residents to the Greater Toronto Area, coupled with the fact that employment remains strong in our city. Also, Toronto is in the top four most populated cities in North America, not something that we could say 3o odd years ago. What can we say? People like living in Toronto!
Beaconsfield
What may surprise buyers is that Beaconsfield in Toronto’s West Queen West area saw a more significant value dip than expected. Beaconsfield is positioned to rebound in the shorter term, so expect to get snapped up for a great buy! Beaconsfield is a hip neighbourhood with some great parks (i.e., Trinity Bellwoods Park!) Lots of great shops and cafes. This is a great investment area for the urban lover.
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Bedford Park
Bedford Park has seen values dip by as much as 25%, and a buyer can get an entry-level semi-detached home for $1.3; this hasn’t been possible for several years. Also, a detached house can set a buyer back by about $1.75m – don’t get us wrong, this isn’t chump change, but considering where Bedford Park was in February of 2022, this is a great opportunity. A nondescript bungalow on the border of Scarborough or a tried, tested, true neighbourhood in North Toronto. Not a contest.
North York
North York is a wide swath of areas, but this is an excellent spot for buyers to look into. This is yet another area that has seen a drop in house values. The lots are large, the houses are more significant (than downtown homes), and the ability to move around this city is pretty good, thanks to the TTC.
➤ Every good investment needs a well-planned strategy. Start preparing with the following:
- Are Condos A Good Investment?
- The Most Undervalued Condos In Toronto
- Condo vs House Investment
- Why Parents Should Invest In Toronto Condos For Their Children
- Millennial Home Buying Trends
Condos
Okay, okay, condos are not a neighbourhood. So why did we list this here? We listed condos as an excellent buying opportunity because we believe that condos will have a challenging year.
Condos faired better in 2022 than houses did, but we believe a reckoning is coming. The reason is that the pre-construction condos that were taking deposits as far back as 2017 and 2018 are now coming due.
Those buyers were pre-approved (for the most part) on variable rates that were far cheaper than today. As these condos reach completion and occupancy begins, many buyers will be in an uncomfortable financial position – we are calling into question whether they will be able to close on those pre-construction condos.
Assuming that many cannot close or must sell immediately upon closing, there will be a glut of new condos hitting Toronto’s MLS. With the broader selection of condos, we predict that resale condos will be impacted shortly after that. After all, how could resale condos compete against what is a brand-new condo? We are certainly keeping an eye on the condo space. Stay tuned.
