The news had spread and most markets are now in “correction mode,” as higher interest rates, a lack of affordability and economic uncertainty keep buyers out of the market. Home sales have fallen 13 percent since last spring, almost wiping out gains from the rebound after the Bank of Canada paused rates early this year.
Canadians may see the real estate market return closer to normal in 2024. The aggregate1 price of a home in Canada is set to increase 5.5 percent year over year to $843,684 in the fourth quarter of 2024, with the median price of a single-family detached property and condominium projected to increase 6.0 percent and 5.0 to $879,164 and $616,140, respectively.
Home prices are expected to rise next year in all major markets across the country, with GTA forecast to see the greatest gains. Throughout the second half of 2023, while prices have been declining in other cities, the GTA real estate market has bucked the trend continuing on an upward price trajectory.
For the last year, many Canadians have been fixated on the idea of interest rates needing to come down significantly before they can afford to enter or re-enter the housing market. Acceptance that a mortgage rate of four to five percent is the new normal should untether pent-up demand as first-time buyers, flush with savings collected during the extended down market in housing, regain the confidence to go home shopping. And, with the return of first-timer demand.
Supply shortage and affordability challenges
Canada continues to struggle with a chronic housing supply shortage. According to the Canada Mortgage and Housing Corporation, the country needs about 3.5 million additional housing units by 2030 to restore affordability, with the greatest need concentrated in the provinces of Ontario and British Columbia.3 At the current pace of housing construction and considering the rate of new household formation and immigration projections, inventory will remain out of step with projected demand for years to come.
Pre-Construction Firesales challenges
In our 2023 fall market predictions report, we expected a slowdown in the pre-construction industry and this will hold going into 2024. According to the Canadian Home Builders’ Association, 37% of builders canceled projects in Q3 of 2023 and 65% said interest rates are causing them to build fewer units. This lack of builder confidence is reducing housing starts and in the mid to long-term, this will exacerbate the undersupply issue in Canada. This lack of new housing being completed is fuelling low inventory levels meaning there are now fewer newly constructed homes available to buyers. With fewer houses to choose from, buyers are more likely to find themselves in bidding wars with other buyers driving up prices.
Housing Market Price Predictions For 2025
As with predictions for 2024, higher immigration and continued economic recovery will fuel demand into 2025 though there are still concerns about affordability and lack of supply.
It’s important to note that the foreign buyers ban that currently bans residential property purchases by those who are not Canadian citizens or permanent residents is set to end in 2025. This could drive market competition, fuelling real estate price increases if the lack of housing supply persists into 2025.
The Greater Toronto Area (GTA) is a hotbed of real estate development, with soaring demand for housing and commercial spaces. Amidst this buzz, preconstruction projects have emerged as a lucrative avenue for investors seeking to maximize their returns.
But when is the ideal moment to dive into the world of pre-construction investments in GTA?
In this article, we will explore the 3 key factors that make this the best time to consider investing in preconstruction projects and how you can capitalize on this flourishing market.
1. Surging Demand and Limited Supply
According to recent population statistics from the United Nations, the GTA is one of the fastest-growing regions in Canada. Currently, the province has an estimated population of 6.3 million and is projected to rise to 7 million by 2025 according to the government population projection. This growth in population is fueled by the province’s vibrant economy, diverse culture, and thriving job market. As more people flock to the region, the demand for quality housing and commercial spaces is
reaching unprecedented levels. However, the supply of ready-to-move-in properties is struggling to keep pace with this surge. This disparity between demand and supply presents a golden opportunity for investors to capitalize on preconstruction projects.
By investing early, you can secure your stake in prime locations and benefit from rising property values,
ensuring a favorable return on investment when the project is completed.
2. Attractive Pricing and Incentives
One of the most enticing aspects of preconstruction projects is the potential for favorable pricing. Developers often offer competitive prices during the early stages of a project to attract investors and secure financing. By investing at this stage, you can benefit from these attractive prices, which are
likely to appreciate significantly as the project progresses.
Additionally, developers frequently provide incentives to early investors, such as discounted pricing, upgraded finishes, or flexible payment plans. These incentives not only enhance the appeal of the investment but also contribute to your overall profitability.
3. Potential for Customization and Modern Amenities
Investing in preconstruction projects allows you to tailor your investment according to your preferences. You can choose from a range of floor plans, finishes, and other customizable options. This gives you the opportunity to create a property that aligns perfectly with your vision. Moreover, preconstruction projects often boast state-of-the-art amenities and contemporary designs, catering to the demands of modern buyers. By investing in such projects, you position yourself to attract tenants or buyers who seek the convenience and luxury associated with new construction. This further enhances the long-term value
and rental potential of your investment.
The ideal moment to invest in preconstruction projects in the GTA is now. With surging demand, limited supply, attractive pricing, and customization opportunities, the market is ripe with the potential for astute investors. By seizing this opportunity, you can secure your stake in prime locations, benefit from appreciating
property values, and enjoy the perks of modern amenities. However, it’s crucial to conduct thorough due diligence, research reputable developers, and consult
with experts to make informed investment decisions. The GTA’s real estate market is flourishing, and investing in preconstruction projects can be your ticket
to substantial returns and financial success.
Looking for a great deal on a Toronto condo? Check out our list of assignments for sale! With units starting at just $$$$$, you’re sure to find something that fits your budget.
Negotiate significant savings in comparison with resale and other pre-construction units.
Move into your new home in just weeks or months
Get the full warranty on a brand-new, never-been-lived-in unit
An Assignment Sale in the Pre-Construction Market
In other words, an assignment sale is thesale – or “assignment” of a contract to buy a pre-construction condominium suite. An assignment sale usually happens before the condo has been registered, so no one can own the unit itself. The only thing that can be sold is the contract.
When you buy a pre-construction condominium unit, you receive an assignment clause/right to sell in the form of a contract. You can decide to sell your assignment even before the condominium is constructed.
The Assignee is not purchasing the property from the Assignor. Instead, the Assignee is obtaining the right to buy the property from a third party, such as a builder.
The Assignor is authorizing the transfer of its interest and rights in the Original Agreement with the Builder (or original seller) to another party.
The Assignor is assigning its interest in the original deposit to the Assignee.
The Assignee agrees to take on all the duties of the original contract from the Assignor.
The many benefits of contract sales exist for both the buyer and seller before a building is even constructed and registered.
This article will explore assignment sales, from why they are used to the process of making this type of transaction and how it can be transferred.
By learning more about assignment sales, you can decide if this type of sale is right for you. Here at GTA-Homes, we pride ourselves on giving our clients the tools they need to make informed decisions about investing in pre-construction homes.
This way, you will be able to determine if an assignment sale is right for you. We at GTA-Homes strive to provide our clients with the knowledge of the pre-construction market, so that they can make a more informed choice when it comes to investing in their future.
Is It Worth It to Purchase an Assignment?
You may be able to find some of the best deals on condos in the GTA by looking for assignment sales. These types of sales typically have fewer buyers because many real estate agents aren’t familiar with them and don’t bother to advertise these listings.
Assignment sales are often foregone by potential buyers because they are not fully understood. Lack of Knowledge about the process can cause people to overpay for their suite due to bidding wars amongst other things. By opting into an assignment sale, you have the opportunity to avoid all that extra competition and pay much less than what you would for a resale unit.
The condo market benefits both the buyer and the seller in multiple ways. The seller can list their unit earlier, and the buyer can save time and money.
An assignment agreement also has the perk of receiving a unit that is brand-new and automatically registered under the seven-year Tarion Warranty Program. Also, you’ll be able to move in much sooner than if you were waiting for the building completion which could take 3 to 4 years!
Mississauga is Canada’s one of the largest cities. It has become a vibrant economic and cultural hub, and It offers a variety of living experiences through its increasing stock of condos and homes.
Mississauga is surrounded by beautiful Lake Ontario shorelines, home to many waterfront condos and homes. The old village of Port Credit was transformed into a pedestrian-friendly shopping district. The Square One Shopping Centre is located further north on Hurontario Street, the city’s main thoroughfare. It also houses a large number of corporate headquarters. A string of communities along the Credit River to the west provide a family-friendly, lush living environment. In the city’s northwest corner is the former village of Streetsville. There are also several shopping centers and recreational areas scattered throughout the community.
MiWay is the city’s transit agency and offers a wide range of bus routes. Many use the Mississauga Transitway, which provides increased frequency and reliability. The Transitway runs approximately from Pearson Airport to Winston Churchill Boulevard via Square One. It is served by both GO Transit or MiWay routes. GO offers rail service to the area. The Lakeshore West runs parallel to Lake Ontario and offers high-quality service seven days per week. The Milton Line runs through the city’s centre and western reaches and offers ten round trips on weekdays. As well, the opening of the Hurontario LRT in 2024 provides transit access for those commuting from north to south in Mississauga. There are four major highways – Highway 401, Highway 403, Highway 407 and Highway 410 – all crossing through the Mississauga city.
If you’re looking to buy your first home, but don’t have the money to get into the market right now, it may be worth your while to look into Mississauga’s many pre-construction condo developments. With the right pre-construction condo, you can get into the market early, take advantage of great savings on your monthly mortgage payment, and build equity as the building itself rises around you. Here are some things to keep in mind if you’re considering getting into the Mississauga pre-construction condo market.
1. Lakeview DXE Club Condos
Developer: Vandyk Properties Address: 1345 Lakeshore Rd E, Mississauga Nearest Intersection: Lakeshore Rd E & Dixie Rd Pricing: TBA Occupancy: TBA Storeys / Suites: 2 Towers – 8 & 12 Storeys / TBA Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: TBA Maintenance Fees: TBA Deposit Structure: TBA Incentives*: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Property Management & Leasing Services Available, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements
2. The Vic Condos
Introducing The Vic Condos, the newest mid-rise condominiums coming soon to your town. You’ll find everything you need around here in beautiful Downtown Streetsville; with great food, shops and sights all just a few minutes away by car or bus. And when it comes time for higher education – Its right next door to the University of Toronto – Mississauga Campus!
Developer: Forest Green Homes Address: Tannery St & Queen St S, Mississauga Pricing: TBA Occupancy: TBA Storeys / Suites: 4 Storeys / TBA Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: TBA Maintenance Fees: TBA Deposit Structure: TBA Incentives*: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Free Leasing & Property Management Services, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements Suite Finishes: Laminate Flooring, Stone Kitchen Countertops, Stainless Steel Kitchen Appliances and more Building Amenities: TBA
3. Eleven 11 Clarkson Towns
Eleven 11 Clarkson Towns new townhomes are coming to Clarkson Village in Mississauga, Ontario. These homes will be right next door to the shops and restaurants of Lakeshore, making it easy for residents to do everything they need without having to leave home!
Developer: Saxon Developments Address: 1111 Clarkson Rd N, Mississauga Nearest Intersection: Clarkson Rd N & Lakeshore Rd W
Pricing: Starting From The Mid $500s
Occupancy: December 2020 Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: 690 sq ft – 1,687 sq ft Maintenance Fees: Approx. $0.30 / sq ft Deposit Structure: $10,000 on Signing // 5% Minus $5,000 in 30 Days // 5% in 180 Days // 5% in 300 Days // 5% on Occupancy Incentives: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies ($5,000 for 1 Bed // $7,500 for 2 Bed // $10,000 for 3 Bed), Free Assignment (Value of $10,000), Property Management & Leasing Services Available, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements
4. 91 Eglinton Ave East Condos
Introducing a new condo community in the heart of Mississauga- at 91 Eglinton Ave East! Nestled between Hurontario St. and Eglinton Ave., you will never want to leave this condominium townhome block which features 6 towers and 2 buildings all within walking distance from everything that Mississauga has to offer. From major highways, shops and schools- it’s all right around the corner for you at 91 Eglinton Ave East.
Developer: Liberty Developments Address: 91 Eglinton Avenue East, Mississauga Nearest Intersection: Eglinton Ave E & Hurontario St Pricing: Anticipated To Start From The High $400’s
Occupancy: Anticipated For 2024 Storeys / Suites: Six Towers – 13, 19, 24, 25, 35, & 37 Storeys / Suites TBA Suite Types: One Bedroom – Three Bedroom Suites + 3-Storey Townhomes Suite Sizes: TBA Deposit Structure: TBA Incentives: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements, Exclusive 1 Year Free Leasing Services & 1 Year Free Professional Property Management Services*
5. Kindred Condos
Introducing your next home- a beautiful new condo in Mississauga perfect for anyone who wants to be closer to everything. With Westwood Mall just around the corner, major highways and universities nearby, as well as being situated near other essential amenities; this is a great option for those looking for convenience.
Developer: The Daniels Corporation Address: 2475 Eglinton Ave W, Mississauga Nearest Intersection: Eglinton Ave W & Erin Mills Pkwy Pricing: Starting From $485,900 Occupancy: February 2025 Storeys/Suites: 25-Storeys / TBA Suite Types: Studio – Two Bedroom + Den Suites Suite Sizes: 433 sq ft – 953 sq ft Maintenance Fees: $0.59/sq ft (Includes Bell Gigabit Fibe 1.5 Internet // Water & Hydro Separately Metered) Deposit Structure: $7,000 on Signing // 5% Minus $7,000 in 30 Days // 1% in 90 Days // 1% in 120 Days // 1% in 150 Days // 1% in 180 Days // 1% in 210 Days // 5% in 400 Days // 5% on Occupancy Incentives*: VIP Pricing & First Access to the Best Availability, Capped Development Levies, Free Assignment, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements, One Parking Unit ($55,000 Value) + One Locker Unit ($3,000 Value for a half-height locker or $5,000 Value for a full-height locker) Available for ONLY $45,800!*, Capped Closing Costs (All One Bedroom + Den & Smaller – $10,000 + HST // All Two Bedroom & Larger – $12,500 + HST) Suite Finishes: Laminate Flooring, Stone Kitchen Countertops, Stainless Steel Kitchen Appliances, Stacked Washer & Dryer Building Amenities: 24/7 Concierge, Private Roundabout Driveway Entrance, Pet Wash, Co-Working Space, Bookable Boardroom, State-of-the-Art Fitness Centre, Yoga Studio, Party Room, Outdoor Playground with Firepit, Games Room, Outdoor Terrace, Gardening Plots