If you follow Canadian real estate, then you probably already know that the home prices in Toronto are amongst the highest in the country. In fact, the average price for a home in Canada’s biggest city is approaching $1 million, partly driven by demand.
And while you’d be hard-pressed to find real estate in Toronto that’s not increasing in value annually, there are certain pockets of the city that are particularly inviting for real estate investments, says Michelle Kam, a Toronto real estate agent and mortgage broker.
When it comes to assessing homes for investments in the city, current average price is not the only marker — it’s also momentum, or how fast the value is rising. Based on that, you can get a more accurate picture of how prices might be down the road when you’re ready to sell.
Here are the hottest neighbourhoods in Toronto if you’re looking to buy property for investment purposes.
This community sits in the western part of the city, which was once known only as Etobicoke before the city amalgamated in 1998. It has a wide mix of homes from post-war bungalows to modern three-bedrooms, explains Michelle Kam.
But what’s more important for real estate investments is that the neighbourhood is showing strong momentum, with an average price of $1 million for a three-bedroom detached home (as of March/April) — compared to $981,000 the previous year.
This has long been one of the popular areas of the city to live and play in. There has been revitalization of the area in recent years, including a huge mural.
That’s part of the reason why it’s better than ever for investors, explains Michelle Kam. It (along with a handful of other neighbourhoods) posted more than a 25% increase in housing prices during the first half of 2020, she notes. The average price of a home in this neighbourhood topped $2 million in 2019.
Admittedly, Moss Park hasn’t always been the most desirable area of the city, at least from an investor perspective. But even though a revitalization plan was put aside, it has gained attention from developers and it is now one of the hottest places in the city to buy real estate, explains Michelle Kam.
Statistics show that Moss Park has tremendous momentum of late, with an average 2019 price over $1.5 million. And that doesn’t just apply to detached — this semi-detached home in the Moss Park neighbourhood was up for $1.25 million late last year.
This quieter neighbourhood in the city has a lot of appeal, including its green space and Wychwood Barns Park that’s home to artists, notes Michelle Kam.
It’s also among the top places right now to buy Toronto real estate and is gaining in momentum (more than a 25% annual increase) with an average property price that’s more than $2 million as of last year.
This small neighbourhood has a nice blend of greenspace and restaurants and is pedestrian-friendly.
Crescent Town, in the former city borough of East York, has an average home price of about $1 million for a three-bedroom — with strong momentum on its side. Statistics show the price for a detached home of this size was around $750,000 just a year ago in the same neighbourhood, making it an ideal place for real estate investments.
Having an experienced Toronto real estate agent on your side can help you get the most from your real estate investments, concludes Michelle Kam.