There’s no way around it; property in Toronto comes with a high price tag. As one of the most expensive cities in Canada, finding affordable housing in Toronto or even in the Toronto Greater Area (GTA) is no easy task. Many factors contribute to the price of a house, and it’s important to know what they all are before deciding on which home you want to buy. This blog post will give you an overview of how real estate works in the area, as well as some tips about where you can find affordable homes for sale in Toronto!
Let’s begin with some basic facts. Toronto ranks as the second most expensive city in Canada after Vancouver. The median price of a single-family detached home would cost you an average of $1,352,200 in Toronto, while the average condo in the area recently hit $764,000. A combination of high demand with a low supply of homes has made prices skyrocket in Toronto.
You probably think this is a lost cause, but don’t lose hope just yet. Looking in the right place in the city and readjusting some expectations can lead to success in your quest for your dream home especially when you can move in with your beloved furniture from ashley.
Find the right neighborhood
Location is the number one thing that affects home prices in Toronto. If you’re looking to stay on budget while searching for property in Ontario’s capital, be sure to avoid listings located in the central and southern parts of the city. Upscale Toronto neighborhoods such as The Bridle Path, Forest Hill, Rosedale-Moore Park, York Mills, and Hoggs Hollow concentrate in those areas. They should only retain the attention of those homebuyers with Bezos-level wealth.
In contrast, the northwest and northeast areas of Toronto have more reasonably-priced real estate alternatives for families, young professionals, and working couples. Let’s take a look at some of the neighborhoods where is more likely to find an affordable property:
- Upper Beaches: Located on the eastern side of Toronto, just north of Lakeside Village, Upper Beaches is a quiet and laid-back community many families, working couples, and seniors call home. The most common dwelling styles are townhouses and duplexes.
- North York: With plenty of parks and green spaces, this quiet area is close to everything, from shopping malls to restaurants, gyms, and subway stations. It is near downtown Toronto as well. As a predominantly urban area, condos are the most popular property style in North York.
- Danforth Village: This well-known shopping district located along Danforth Avenue has a distinctive multicultural flavor to it. It is an excellent choice for first-time property buyers, and they have plenty of Victorian-style semi-detached homes, bungalows, and townhouses.
- Mimico: Mimico is considered one of the best neighborhoods in the GTA right now. Nestled on the southeast corner of Etobicoke, the area has two commercial districts and plenty of recreational activities. Real estate options here include modern condos, single-family houses, and beautiful Tudor-style bungalows.
- Eglinton West: Also known as Little Jamaica, Eglinton West is situated along Eglinton Avenue in the York District. This area has a good mix of family homes and apartments, multiple amenities, and is very family-friendly.
Determine your preferences
Picking the right neighborhood is the first step, but there are other essential decision-making moments if you look to keep within your means while buying a home in Toronto. In the end, it’ll all depend on your personal needs and lifestyle preferences like having a water heater from rheem or are you looking for a property to live by yourself, or is it for a family? Do you prefer to be close to work/school? Are you willing to renovate? Do you care about having a garden or a patio? Will you move in with a pet?
The answers to those questions can give you more direction and help you balance your budget with your specific necessities. Consider that condos tend to be less expensive than houses, but they may not be as private or spacious as a free-standing residential structure. Also, newly built homes are usually pricier than older and existing ones, but the latter may need a higher investment in long-term maintenance.
Avoid peak season
Timing is another critical factor when buying real estate in Toronto. Purchasing a property during the peak season —starts around March and typically lasts until the end of May, means higher prices due to less inventory and bidding wars. The best time of the year for lower real estate prices in the Canadian city is winter. Buying is recommended around the holiday season and in January if you want to catch some bargains.
Manage Your Expectations
Remember that Toronto is a hot market, so homebuyers should learn to manage their expectations. Suppose you find a home in a great neighborhood that seems to fit your budget but somehow looks too much like a steal in the area. In that case, the seller may be listing that home artificially low to generate bidding wars and sell for a considerably higher price. It often happens that first-time buyers take the bait and go after an ultimately unattainable property instead of focusing on listings in their price range.
Pro Tip: In real estate, there are no miracles. The market is based on supply and demand, so if something sounds too good to be true, then it is.
Hire A Real Estate Agent
If you have made up your mind about being a Toronto homeowner and are currently reviewing listings in the area, don’t underestimate the role a real estate agent or broker can play in your personal process of finding an affordable house in Toronto. Agents in the area have experience with the local real estate market, knowledge about the city’s neighborhoods. They can act in your best interest as a buyer while you go to open houses and interact with other agents representing the seller.
Get Pre-Approved For A Loan
At this point, you should be pre-approved for a loan or have enough funds in the bank in case you find that “unicorn” property you’ve been dreaming about. Your real estate agent can help you navigate this process and assist you with additional tasks such as understanding the market values, coming up with a plan to find your ideal home, and helping you win a bidding war if there is one.
Homeownership is a life-changing decision and a long-term commitment, especially in a city as expensive as Toronto. However, if you carefully plan accordingly, have patience, get the correct data and real estate agent guidance, you shall succeed.
