“The average investor has been priced out of Toronto,” Nick Vescio, a seasoned investor who focuses on Southern Ontario, told CREW.
Indeed. Toronto’s momentum held steady in January, according to the Toronto Real Estate Board.
Prices were up 11.21% year-over-year in January throughout the GTA. The average price in the city of Toronto last month was $636,728.
The average price for a detached home increased by 11.6% to $1,061,789; the average semi-detached increased 12.8% to $515,024; and the average condo increased by 3.1% to $319,855.
That’s great news for current investors, but so good for prospective buyers. Especially considering the forecasted interest in even more sales this year.
“It is clear that the handoff from 2015 to 2016 was a strong one. This is not surprising given that recent polling conducted for TREB by Ipsos suggested 12 per cent of GTA households were seriously considering the purchase of a home in 2016,” Toronto Real Estate Board President Mark McLean said. “Buying intentions are strong for this year as households continue to see home ownership as an affordable long-term investment.”
That doesn’t mean investors interested in Southern Ontario don’t have great opportunities.
For his part, Vescio focused on investing in Oakville before focusing on Hamilton – both decisions that resulted in his taking advantage of impressive price gains.
“Homes in Hamilton can be had for a third of the price (as those in Toronto) and the proximity to Toronto makes it attractive,” Vescio said. “St. Catherines is the next Hamilton, though.”
The average price in St. Catherines was an attractive $285,451 in December of this year. And that was up 6.4% year-over-year.
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If you’ve been priced out of Toronto, these are the areas you may want to invest in.