Buyers wanting to buy along the Yonge St. subway line in central Toronto are finding it difficult. The supply of listings and interest rates are both very low. Some listings are pounced upon by determined Buyers who compete so vigorously that sold prices up to 20% in excess of the asking prices are being recorded.

I have been selling residential real estate in Toronto for 37 years. I have ridden through two boom and bust cycles and intend to remain in the saddle for at least another two. My past work experience suggests to me that change is coming to our market place. Toronto real estate has increased in value dramatically over the last 12 years. Prices have more than doubled in that time. The average semi-detached house in the core now sells for $775,000 and trades in less than 30 days. The average detached house sells for $1,200,000 and trades on average just as quickly.

When I look back to the late 1970’s and the late 1980’s, I remember market conditions that mirror where we are today. Supply was low and demand was high. There were many frustrated Buyers waiting to finally win a bidding war. Some homeowners planning to sell would not make the decision to list because every sale seemed to indicate a new market high. Others would gladly have sold if they had been able to buy.

Low rates and low supply never last forever. “This time it’s different” is a refrain heard at the tail end of every boom. I do not think so. This cycle will morph like the others did into a Buyer’s market. Rates will rise and negatively impact affordability. The “Market-Timers” will list when it becomes clear the weather has changed. The supply of frustrated Buyers will shrink dramatically and prices will either flat line or adjust downwards.

What may be “different this time” is the extent to which Toronto’s core has been made more valuable by the City’s growth. There is a direct relationship between growth and the time it takes to get to work. As commute times lengthen, those who work in the city seek to move closer to work. This keeps the demand for centrally located real estate higher than it might otherwise be. Like Manhattan in New York, the core is transitioning from an eclectic economic mix of residents to an upper income only demographic. It is quite possible that central values will stay protected by this dynamic for many years to come.

                   What do I want in an agent?

In 1827, the newly formed council of King’s College University bought 150 acres of undeveloped forest land south of Bloor Street and west of Avenue Road. The purchase price was 3,750 pounds.  What would eventually become the University of Toronto Campus was originally acquired for 25 pounds per acre!   

Today, the University-Palmerston area is a mix of single family homes, student housing, condominiums and retail development.  Next to the University of Toronto’s St. George Campus, the neighbourhood has museums, live music venues and Honest Ed’s – arguably Toronto’s most famous discount store.  This eclectic blend is what makes University-Palmerston unique.       

The University-Palmerston neighbourhood is also thought of and referred to as the South Annex by its residents and merchants. Those working and living east of Grace Street and north of College think of themselves as part of the South Annex. The area is served by the Spadina and Bathurst subway stations along the Yonge-University line.  Drivers will find Harbord Street an easier drive than Bloor Street West when traveling east and west. 

A typical University-Palmerston house is a 2-storey semi-detached on a 20’ wide lot.  In 2011, prices ranged from just under $550,000 to above $1,000,000.  Some of the houses have undergone interior renovations and retain their original exteriors. Others have modified exteriors that express the tastes and traditions of their current owners. There are a few high rise condominium projects, most of which are located along Spadina Avenue.  2011 condominium prices ranged from $300,000 to over $900,000. 

University-Palmerston is served by Huron St. Junior Public School, Lord Lansdowne Junior and Senior Public School and Harbord Collegiate Institute.  St. Francis of Assisi Catholic School is located at 80 Clinton Street. Nearby private schools are University of Toronto Schools (UTS) and Taddle Creek Montessori School.

University-Palmerston’s two main shopping areas are located along Bloor Street West and along Harbord Street.  Harbord Street between Spadina Avenue and Bathurst Street has specialty bookstores, restaurants and a ceramics studio.  Bloor Street between Avenue Road and Bathurst Street features food shops, yoga studios and restaurants offering a wide variety of national cuisines. There are plenty of sidewalk cafes which make strolling Bloor Street in clement weather a delight.

The Royal Ontario Museum, The Bata Shoe Museum, The Miles Nadal Jewish Community Centre and the Bathurst Street Theatre are all within walking distance of University-Palmerston.  Trinity St. Paul’s United Church is home to the Tafelmusik Baroque Orchestra. Mirvish Village on Markham Street offers artist’s studios, restaurants and a comic book shop.  Honest Ed’s, brainchild of Toronto merchant and theatrical impresario Ed Mirvish, still provides bargains at the corner of Bloor and Bathurst Streets.  For those seeking a peaceful walk, elegant Palmerston Boulevard, with its turn-of-the-century streetlamps, offers a haven from the hustle and bustle. 

University-Palmerston caters to students, families, theatergoers, music lovers and foodies.  Its residents can walk to museums, restaurants and yoga classes.  Fine housing stock and an excellent location make the University-Palmerston neighbourhood a value proposition for Buyers. Its cultural scene and services make it highly desirable.  

To search for properties in University-Palmerston, click here.

The Toronto neighbourhood map displayed on this website was published in “Your Guide to Toronto Neighbourhoods”, is copyright Maple Tree Publishing and has been reproduced by the Toronto Real Estate Board under license.

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