If you are currently thinking of buying Toronto condos for sale, you’re not alone. The condo market in Ontario’s capital has seen a price increase of 18% over the past year, and there’s no sign of it slowing down anytime soon. With so many people looking to purchase a unit in the city, either to live in or for rental purposes, it can be hard to know whether now is the right time for you.
Also, this is not a “Yes” or “No” question because there are many things to consider when purchasing real estate, especially in a market as hot as Toronto’s. You should think about things like interest rates and current market conditions, personal preferences, lifestyle considerations, and even family size. It’s important not to rush into anything without knowing all of the facts. To give you some perspective, here are some of the many factors that make this an ideal time for anyone looking to purchase a condo in Toronto.
Condos Appreciate Non-Stop In Toronto
Even with the expected market fluctuations, properties in Toronto’s real estate market ultimately continue to appreciate at a high pace. Toronto’s demand for housing hasn’t dwindled in the last decade or so, and that undoubtedly indicates that it will remain stable in years to come. The reason for the non-stop appreciation is a fundamental economic principle: The housing supply cannot keep up with the increasing demand, leading to soaring prices.
Those market conditions currently affect all property types: detached homes, rowhouses, apartments, and condos. This last segment tends to have a more moderate appreciation than low-rise properties. However, condos in Toronto have had a healthy historical appreciation rate that ranged between 5% and 10% yearly in pre-pandemic years. The condo market slowed down significantly in 2020 due to Covid but has seen a dramatic revival in both the city and suburbs in just one year, with Toronto real estate agents reporting an increased interest in GTA condos since the beginning of 2021.
According to a recent market report from the Toronto Regional Real Estate Board (TRREB), a Toronto condo for sale now has an average price of over $730,000, a surge of about 9% from the same period last year. The record-breaking prices will continue to climb throughout 2022 if projections of a growing population and scarce inventory end up becoming a reality.
Condos Are A Good Investment
Buying a Toronto condo for investment purposes seems to be a good idea right now. Here are some of the reasons:
- With the Covid situation now stable, the city has seen the return of international students and other newcomers looking for immediate housing, which is usually a rental property.
- Now that immigration rates and the number of people relocating to Toronto are back to normal a isthe rental demand is soaring, with high competition and frequent bidding wars for the available units in the city.
- The Greater Toronto Area’s rental market is red-hot, with rent prices climbing 19% in just seven months (February -September 2021).
- The average rent for a condominium in downtown Toronto hit $2,446 the past September. The average price for a condo for rent in the rest of the GTA was $2,373 the same month.
If you purchase the condo to build equity, letting it appreciate over time (probably with the intention of buying a bigger, low-rise property at some point) may also be a good decision considering the current market conditions. Just make sure to have a proper investment strategy.
Condos Are More Affordable
During 2020, Covid-19 inflated the demand for freehold properties among Torontonians with job flexibility who started looking to escape from urban centres to a more spacious, suburban lifestyle. That demand never really declined, and low-rise dwellings continu