The Globe and Mail July 27th Article sheds some light on the Toronto Real Estate Prices, but it may also be quite a bit confusing.
In West Queen West which I consider to encompass areas from Bathurst to Dufferin and Queen to as high North as Harbord and in some cases Bloor Street West, home values are as much a product of possible rents as they are of demand for the area.
Rents in the West Queen West corridor are acting like a hedge against potential market downturn. Very similar to a hedge against inflation as described in Canadian Business News. So buyers here are not as panicky as those in other parts of Toronto where the neighbourhoods may be geared mostly to single family residents, mature developments and where prices have naturally taken a breather. Afterall, if markets do correct, or drop significantly, owners in places like Little Portugal, Palmerston, Little Italy, Trinity Bellwoods can always count on some of the highest rents in the GTA per square foot.
Yan high fives his client in Trinity Bellwoods at 87 Markham Street where the house fetched 18% over asking in June 2017 amidst the fear of market slowdown.
TRENDS HERE ARE UNLIKE ANYWHERE ELSE:
West Queen West is already the destination for hipsters, professionals, actors, athletes and entrepreneurs. Add to that …the Downsizes. Yup, your mom and dad are moving in. Still concerned about Toronto Real Estate Prices? Mom and dad will help stabilize these prices for you.
After all, they are the ones who tend to be handing out the large deposits and the renovation cash to many of the new buyers in this area. So now they want some of this great Food, Entertainment, lifestyle and proximity to all that’s fun in Toronto.
New Local Buyer: “I may be retired, but I have long way to go before I’m old. I still have a lot of good times ahead of me, so why should i move to some retirement community.”
I want to live close to the action, and where my kids like to hang out. If I’m down where they want to live, I will see them more often and they can always drop off my grand kids, whom I wouldn’t otherwise get to see if I moved farther away”.